Market Newsdesk

SAN JOSE, Calif., July 29, 2021 (GLOBE NEWSWIRE) — California Water Service Group (NYSE: CWT) ( “Company”) today announced net income of $38.2 million or $0.75 earnings per diluted common share for the second quarter of 2021, compared to a net income of $5.3 million or $0.11 earnings per diluted common share for the second quarter of 2020.         

The $32.9 million increase in net income was primarily due to the December 2020 decision by the California Public Utilities Commission (CPUC) on California Water Service Company’s (Cal Water’s) 2018 General Rate Case (2018 GRC). The decision authorized rate increases and the continuation of regulatory mechanisms that the Company had not recorded in the second quarter of 2020. Second quarter 2021 results included cumulative GRC rate relief of $7.9 million, representing 2020 and 2021 rate changes, and regulatory mechanism net revenue increases of $18.0 million in the second quarter of 2021 as compared to the second quarter of 2020. The increase in net income resulting from the adoption of the 2018 GRC was partially offset by increases in administrative and general expense of $4.8 million, depreciation expense of $2.7 million and property taxes of $0.6 million.

Additional factors outside the Company’s immediate control significantly contributed to the increase in net income, including a $10.9 million increase in accrued unbilled revenue partially offset by a $1.9 million decrease in unrealized gain on certain benefit plan investments. Seasonal weather patterns, including increases in demand, tariff changes, and the number of unbilled days, are the primary drivers of accrued unbilled revenue.

According to President and Chief Executive Officer Martin A. Kropelnicki, second quarter results were in line with the Company’s expectations.

“I am particularly pleased with second quarter efforts to finalize our California Infrastructure Improvement Plans and General Rate Case for calendar years 2023 through 2025, which were filed on July 1, as well as our reactivation of the drought response team that helped make us a leader during the last California drought,” he said.

As announced, Cal Water submitted its 2022-2024 infrastructure improvement plans in its General Rate Case filing with the CPUC. In the filing, Cal Water requested approval to invest $1.02 billion over the three-year period in water system infrastructure. The filing also included a new rate design.

“We knew that without the Water Revenue Adjustment Mechanism (WRAM), which decouples water sales and revenues, we would need a new, innovative rate design that provides reasonable revenue stability while protecting low-income and low-water-using customers. The filing reflects our commitment to making the water system improvements that are critical to reliability and safety without losing sight of need for affordability,” Kropelnicki said.

Cal Water also supported Governor Gavin Newsom’s call for a 15% reduction in water use in response to historic drought conditions.

“We have a robust conservation program in place and stand ready to partner with customers to achieve water-use reduction targets as we did during the last drought,” Kropelnicki said.

Additional Financial Results for the second quarter of 2021

Operating revenue increased 21.4% to $213.1 million in the second quarter of 2021, an increase of $37.6 million as compared to $175.5 million in the second quarter of 2020, primarily due to the 2018 GRC rate increases. Rate relief and regulatory cost offset mechanisms added $25.9 million, $1.4 million of which was related to increased water costs. Accrued unbilled revenue increased $10.9 million primarily due to seasonal changes, including increases in demand, tariff changes, and increases in the number of unbilled days average daily billings in the second quarter of 2021 as compared to the second quarter of 2020.

Total operating expenses increased $7.9 million, or 4.8%, to $170.9 million in the second quarter of 2021 compared to the prior year.

Water production expenses increased $3.8 million, or 5.3%, to $74.9 million in the second quarter of 2021, primarily due to increases in purchased water quantities and higher wholesale water rates. As a result of the California revenue decoupling mechanisms, we record an increase to revenue equal to the increase in California water production costs.

Administrative and general and other operations expenses decreased $0.4 million or 0.7%, to $52.5 million in the second quarter of 2021, due to decreases in costs associated with deferred WRAM revenue of $6.3 million which was partially offset by increases in employee wages of $4.7 million. Changes in conservation program expense, employee pension benefits, and employee and retiree medical costs for regulated California operations generally do not affect net income, as the Company has been allowed by the CPUC to record these costs in balancing accounts for future recovery, creating a corresponding change to revenue.

Depreciation expense increased $2.7 million, or 11.0%, to $27.2 million in the second quarter of 2021 due to utility plant placed in service in 2020.

Income taxes increased $1.4 million to $2.0 million in the second quarter of 2021 due to an increase in pre-tax earnings and reduction in state tax benefits from repairs deductions of $64.0 million which was partially offset by a decrease in 2021 effective tax rate due to a $19.4 million increase in refund of excess deferred federal income taxes in the second quarter of 2021 as compared to the second quarter of 2020.

Property and other taxes increased $0.6 million, or 7.6%, to $7.7 million in the second quarter of 2021, due primarily to an increase in our assessed property values for utility plant placed in service.

Other income and expenses increased $3.3 million in the second quarter of 2021, due primarily to a $4.0 million decrease in other components of net periodic benefit costs which was partially offset by a $1.9 million decrease in unrealized gain on certain benefit plan investments and $0.9 million decrease in allowance for equity funds used during construction.

Year-to-Date Results

For the six month period ended June 30, 2021, the Company had net income of $35.2 million or $0.69 earnings per diluted common share, compared to a net loss of $15.0 million or $0.31 loss per diluted common share for the six month period ended June 30, 2020.         

The $50.2 million increase in net income was primarily due to the December 2020 decision by the CPUC for Cal Water’s 2018 GRC. The decision authorized rate increases and the continuation of regulatory mechanisms which the Company had not recorded during the six month period ended June 30, 2020. Results for the six month period ended June 30, 2021 included cumulative 2018 GRC rate relief of $14.3 million, representing 2020 and 2021 rate changes, and regulatory mechanism net revenue increases of $25.6 million for the six month period ending June 30, 2021 as compared to the six month period ending June 30, 2020. The increase in net income resulting from the adoption of the 2018 GRC was partially offset by increases in administrative and general expenses of $5.5 million, depreciation expense of $5.3 million, and property taxes of $1.3 million.

Additional factors outside the Company’s immediate control significantly contributed to the increase in net income, including a $14.5 million increase in accrued unbilled revenue and $3.1 million increase in unrealized gain on certain benefit plan investments. Seasonal weather patterns and the number of unbilled days are the primary drivers of accrued unbilled revenue.

Liquidity and Financing

The Company received $280.0 million of gross proceeds during the second quarter of 2021 from the issuance of Cal Water’s First Mortgage Bonds. The net proceeds were used to refinance existing debt and general corporate purposes. As of June 30, 2021, the Company had additional short-term borrowing capacity of more than $405.0 million, subject to meeting the borrowing conditions on the Company’s lines of credit facilities. Aged accounts receivable past due more than 60 days increased to $16.1 million as of June 30, 2021 from $13.5 million as of December 31, 2020 due to suspension of shutoff procedures associated with the pandemic, resulting in an increase to the allowance for credit losses.

The Company invested $138.5 million in infrastructure improvements during the first six months of 2021 and estimates annual investments for 2021 between $270.0 and $300.0 million.

On July 28, 2021, the Board of Directors approved a quarterly cash dividend of $0.23 per share of common stock.

WRAM Receivable

The under-collected net receivable balance in the WRAM and modified cost balancing account (MCBA) was $67.5 million as of June 30, 2021, a decrease of 0.5%, or $0.3 million, from the balance of $67.8 million as of December 31, 2020.

Other Information

All stockholders and interested investors are invited to listen to the 2021 second quarter conference call on July 29, 2021 at 8:00 a.m. PT (11:00 a.m. ET) by dialing 1-833-832-5130 or 1-509-844-0151 and keying in ID #3119418. Please dial in at least 15 minutes in advance of the call to ensure a timely connection. A replay of the call will be available from 11:00 a.m. PT (2:00 p.m. ET) on July 29, 2021 through September 29, 2021, at 1-855-859-2056 or 1-404-537-3406, ID #3119418. The replay will also be available under the investor relations tab at www.calwatergroup.com. Prior to the call, Cal Water will post a slide presentation on its website. The presentation can be found at www.calwatergroup.com/docs/q22021slides.pdf after 6:00 a.m. PT. The call will be hosted by President and Chief Executive Officer Martin A. Kropelnicki, Vice President and Chief Financial Officer Thomas F. Smegal III, Vice President of Corporate Development and Chief Regulatory Officer Paul G, Townsley, and Vice President and Corporate Controller David B. Healey.

California Water Service Group is the parent company of regulated utilities California Water Service, Hawaii Water Service, New Mexico Water Service, and Washington Water Service along with TWSC, Inc., a utility holding company in Texas. Together, these companies provide regulated and non-regulated water and wastewater service to more than 2 million people in California, Hawaii, New Mexico, Texas, and Washington. California Water Service Group’s common stock trades on the New York Stock Exchange under the symbol “CWT.” Additional information is available online at www.calwatergroup.com.

This news release contains forward-looking statements within the meaning established by the Private Securities Litigation Reform Act of 1995 (“Act”). The forward-looking statements are intended to qualify under provisions of the federal securities laws for “safe harbor” treatment established by the Act. Forward-looking statements are based on currently available information, expectations, estimates, assumptions and projections, and management’s judgment about the Company, the water utility industry and general economic conditions. Such words as would, expects, intends, plans, believes, may, estimates, assumes, anticipates, projects, predicts, targets, forecasts or variations of such words or similar expressions are intended to identify forward-looking statements. The forward-looking statements are not guarantees of future performance. They are subject to uncertainty and changes in circumstances. Actual results may vary materially from what is contained in a forward-looking statement. Factors that may cause a result different than expected or anticipated include, but are not limited to: the impact of the ongoing COVID-19 pandemic and related public health measures; our ability to invest or apply the proceeds from the issuance of common stock in an accretive manner ; governmental and regulatory commissions’ decisions, including decisions on proper disposition of property; consequences of eminent domain actions relating to our water systems; changes in regulatory commissions’ policies and procedures; the outcome and timeliness of regulatory commissions’ actions concerning rate relief and other matters; increased risk of inverse condemnation losses as a result of climate conditions; inability to renew leases to operate water systems owned by others on beneficial terms; changes in California State Water Resources Control Board water quality standards; changes in environmental compliance and water quality requirements; electric power interruptions; housing and customer growth; the impact of opposition to rate increases; our ability to recover costs; availability of water supplies; issues with the implementation, maintenance or security of our information technology systems; civil disturbances or terrorist threats or acts; the adequacy of our efforts to mitigate physical and cyber security risks and threats; the ability of our enterprise risk management processes to identify or address risks adequately; labor relations matters as we negotiate with the unions; changes in customer water use patterns and the effects of conservation; our ability to complete, successfully integrate and achieve anticipated benefits form announced acquisitions; the impact of weather, climate, natural disasters, and actual or threatened public health emergencies, including disease outbreaks, on our operations, water quality, water availability, water sales and operating results and the adequacy of our emergency preparedness; restrictive covenants in or changes to the credit ratings on our current or future debt that could increase our financing costs or affect our ability to borrow, make payments on debt or pay dividends; and, other risks and unforeseen events. When considering forward-looking statements, you should keep in mind the cautionary statements included in this paragraph, as well as the annual 10-K, Quarterly 10-Q, and other reports filed from time-to-time with the Securities and Exchange Commission (SEC). The Company assumes no obligation to provide public updates of forward-looking statements.

Contact

Tom Smegal
(408) 367-8200 (analysts)

Shannon Dean
(408) 367-8243 (media)

CALIFORNIA WATER SERVICE GROUP
CONDENSED CONSOLIDATED BALANCE SHEETS
Unaudited
(In thousands, except per share data)			June 30				December 31
				2021				2020
ASSETS
Utility plant:
	Utility plant		$	4,047,282			$	3,890,423
	Less accumulated depreciation and amortization			(1,300,676	)			(1,239,865	)
		Net utility plant		2,746,606				2,650,558
Current assets:
	Cash and cash equivalents			66,483				44,555
	Receivables:
		Customers		52,237				44,025
		Regulatory balancing accounts		84,585				96,241
		Other, net		19,469				20,331
	Unbilled revenue, net			52,954				34,069
	Materials and supplies at weighted average cost			9,589				8,831
	Taxes, prepaid expenses, and other assets			20,269				17,964
		Total current assets		305,586				266,016
Other assets:
	Regulatory assets			337,132				325,376
	Goodwill			36,841				31,842
	Other assets			122,588				120,456
		Total other assets		496,561				477,674
TOTAL ASSETS			$	3,548,753			$	3,394,248
CAPITALIZATION AND LIABILITIES
Capitalization:
	Common stock, $.01 par value; 68,000 shares authorized, 51,535 and 50,334 outstanding in 2021 and 2020, respectively		$	515			$	503
	Additional paid-in capital			507,494				448,632
	Retained earnings			484,119				472,209
	Noncontrolling interests			5,145				–
		Total equity		997,273				921,344
	Long-term debt, net			1,059,936				781,100
		Total capitalization		2,057,209				1,702,444
Current liabilities:
	Current maturities of long-term debt, net			5,173				5,127
	Short-term borrowings			145,000				370,000
	Accounts payable			132,972				131,725
	Regulatory balancing accounts			24,839				34,636
	Accrued interest			6,853				6,178
	Accrued other liabilities			50,386				41,040
		Total current liabilities		365,223				588,706
Deferred income taxes				278,957				276,032
Pension and postretirement benefits other than pensions				112,893				115,581
Regulatory liabilities and other				255,017				247,810
Advances for construction				197,687				195,625
Contributions in aid of construction				281,767				268,050
Commitments and contingencies
TOTAL CAPITALIZATION AND LIABILITIES			$	3,548,753			$	3,394,248

CALIFORNIA WATER SERVICE GROUP
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
(In thousands, except per share data)
For the three months ended:
			June 30,				June 30,
				2021				2020
Operating revenue			$	213,123			$	175,484
Operating expenses:
	Operations:
		Water production costs		74,911				71,142
		Administrative and general		31,756				26,939
		Other operations		20,720				25,898
	Maintenance			6,610				6,722
	Depreciation and amortization			27,237				24,542
	Income taxes			1,972				622
	Property and other taxes			7,671				7,126
	Total operating expenses			170,877				162,991
		Net operating income		42,246				12,493
Other income and expenses:
	Non-regulated revenue			5,374				4,208
	Non-regulated expenses			(1,815	)			(492	)
	Other components of net periodic benefit credit (cost)			2,688				(1,332	)
	Allowance for equity funds used during construction			848				1,705
	Income tax expense on other income and expenses			(512	)			(820	)
		Net other income		6,583				3,269
Interest expense:
	Interest expense			11,206				11,613
	Allowance for borrowed funds used during construction			(453	)			(1,132	)
		Net interest expense		10,753				10,481
Net income				38,076				5,281
Loss attributable to noncontrolling interests				149				–
Net income attributable to California Water Service Group			$	38,225			$	5,281
Earnings per share of common stock
	Basic		$	0.75			$	0.11
	Diluted		$	0.75			$	0.11
Weighted average shares outstanding
	Basic			51,080				48,936
	Diluted			51,080				48,936
Dividends per share of common stock			$	0.2300			$	0.2125
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
(In thousands, except per share data)
For the six months ended:
			June 30,				June 30,
				2021				2020
Operating revenue			$	360,860			$	301,047
Operating expenses:
	Operations:
		Water production costs		129,737				125,118
		Administrative and general		62,125				56,619
		Other operations		38,632				39,872
	Maintenance			13,379				13,795
	Depreciation and amortization			54,284				49,034
	Income tax expense (benefit)			1,871				(3,315	)
	Property and other taxes			15,667				14,354
		Total operating expenses		315,695				295,477
		Net operating income		45,165				5,570
Other income and expenses:
	Non-regulated revenue			10,946				8,035
	Non-regulated expenses			(6,575	)			(8,946	)
	Other components of net periodic benefit credit (cost)			5,667				(2,762	)
	Allowance for equity funds used during construction			1,392				3,319
	Income tax (expense) benefit on other income and expenses			(870	)			93
		Net other income (loss)		10,560				(261	)
Interest expense:
	Interest expense			21,428				22,411
	Allowance for borrowed funds used during construction			(747	)			(2,076	)
		Net interest expense		20,681				20,335
Net income (loss)				35,044				(15,026	)
Loss attributable to noncontrolling interests				149				–
Net income (loss) attributable to California Water Service Group			$	35,193			$	(15,026	)
Earnings (loss) per share of common stock
	Basic		$	0.69			$	(0.31	)
	Diluted		$	0.69			$	(0.31	)
Weighted average shares outstanding
	Basic			50,762				48,759
	Diluted			50,762				48,759
Dividends per share of common stock			$	0.4600			$	0.4250

ROCHESTER, N.Y. and NEW YORK, July 29, 2021 (GLOBE NEWSWIRE) — Wegmans Food Markets is bringing its unmatched customer service, restaurant foods, one-stop shopping, and consistent low prices to Manhattan with the announcement of its second NYC location, Wegmans and Vornado Realty Trust (NYSE: VNO) said today. The Manhattan Wegmans, scheduled to open in the second half of 2023, will be located at Vornado’s 770 Broadway, the former site of the Astor Place Kmart. Wegmans opened its first NYC store in the Brooklyn Navy Yard in October of 2019.

“We are so excited to bring Wegmans to Manhattan. This is something we’ve been dreaming about and working toward for a long time,” said Colleen Wegman, president and CEO of Wegmans Food Markets. “The community’s response to the opening of our Brooklyn store had an excitement and energy that you can only experience in New York City. You can feel that energy returning to the city, and we are thrilled to be a part of it.”

“We are delighted to be part of bringing the beloved Wegmans to Manhattan,” said Steven Roth, Vornado’s Chairman and Chief Executive Officer. “Wegmans is one of a kind and will be a best-in-class addition to Manhattan, both for the local neighborhoods and as a destination for residents from across the island. We look forward to partnering with Wegmans’ talented team on the opening of this signature location.”

Under the terms of the 30-year lease, Wegmans will occupy space on both the street and lower levels of 770 Broadway for a total of roughly 82,000 square feet. The building is located in the heart of Greenwich Village, at the nexus of downtown residential, retail and office locations, and occupies a full city block between 8^th and 9^th Streets and Broadway and Fourth Avenue. A 1.2-million-square-foot landmarked building, 770 Broadway is the historic Wanamaker’s department store that Vornado transformed into one of Manhattan’s premier office and creative hubs catering to some of the world’s best-known technology and media leaders.

“Wegmans has been a reliable partner in our Brooklyn community since day one, from local hiring of NYCHA neighbors to feeding first responders at the height of the pandemic,” said Lenny Singletary, Chairman of Community Board 2 Brooklyn. “I’m confident Wegmans’ commitment to community will serve their new neighbors in Manhattan well and foster a positive experience.”

Brokered by RIPCO Real Estate LLC, Wegmans signed an agreement with Transformco to buy out Kmart’s lease at Astor Place, and entered into the long-term lease with Vornado.

About Wegmans

Wegmans Food Markets, Inc. is a 106-store supermarket chain with stores in New York, Pennsylvania, New Jersey, Virginia, Maryland, Massachusetts and North Carolina. The family company, recognized as an industry leader and innovator, celebrated its 100^th anniversary in 2016. Wegmans has been named one of the ‘100 Best Companies to Work For’ by FORTUNE magazine for 23 consecutive years, ranking #4 in 2021.

About Vornado

Vornado Realty Trust is a fully-integrated equity real estate investment trust.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/d0186fad-07f7-4925-9f3b-a61d30d0eac7.

Forward Looking Statement
Certain statements contained herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Vornado to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. For a discussion of factors that could materially affect the outcome of Vornado’s forward-looking statements and its future results and financial condition, see “Risk Factors” in Part I, Item 1A, of Vornado’s Annual Report on Form 10-K for the year ended December 31, 2020. Such factors include, among others, risks associated with the timing of and costs associated with property improvements, financing commitments and general competitive factors. Currently, one of the most significant factors is the ongoing adverse effect of the COVID-19 pandemic on Vornado’s business, financial condition, results of operations, cash flows, operating performance and the effect it has had and may continue to have on its tenants, the global, national, regional and local economies and financial markets and the real estate market in general. The extent of the impact of the COVID-19 pandemic will depend on future developments, including the duration of the pandemic, which are highly uncertain at this time but that impact could be material. Moreover, you are cautioned that the COVID-19 pandemic will heighten many of the risks identified in “Item 1A. Risk Factors” in Part I of Vornado’s Annual Report on Form 10-K for the year ended December 31, 2020.

Media Contacts:

For Wegmans:
Deana Percassi, Director of Public Relations Strategy, 585-429-3627, [email protected]

For Vornado:
Tom Sanelli, Executive Vice President – Finance and Chief Administrative Officer, 212-894-7000, [email protected]

JERSEY CITY, N.J. & BOSTON, July 29, 2021 (GLOBE NEWSWIRE) — Verisk (Nasdaq:VRSK), a leading global provider of predictive analytics and decision-support solutions, today announced its claims management solution, XactAnalysis®, now has a prebuilt integration with the Duck Creek Platform, enabling insurers to simplify and streamline claims workflows. Duck Creek Technologies (Nasdaq: DCT) is a leading provider of core system solutions for the property/casualty insurance industry.

The Duck Creek Platform now connects with XactAnalysis out of the box through Duck Creek’s Content Exchange, the company’s online marketplace for add-ons and services that enhance insurers’ digital ecosystems. XactAnalysis is a powerful full-cycle claims system provided by Xactware, a Verisk business. This accelerated integration allows insurers to seamlessly transmit claims data between the Duck Creek Platform and XactAnalysis, saving time and eliminating the need to enter the same information into multiple claims systems.

“Insurers are continually searching for ways to increase efficiency and eliminate unnecessary steps in their workflows, and this new-and-improved integration helps achieve that aim,” said Jeff Wargin, Chief Product Officer at Duck Creek Technologies. “Now mutual clients of Duck Creek and Verisk can reap the benefits of this integration immediately after deployment without having to spend weeks building a special integration to connect the two systems.”

“We welcome the opportunity to offer this enhanced integration with Duck Creek as part of our ecosystem of open, extendable solutions,” Xactware President Mike Fulton said. “By augmenting the integration between these two ecosystems, Duck Creek and Verisk are improving the claims experience for both our insurer clients and their policyholders.”

To learn more, visit Verisk.com or DuckCreek.com.

About Verisk

Verisk (Nasdaq:VRSK) provides predictive analytics and decision support solutions to customers in the insurance, energy and specialized markets, and financial services industries. More than 70 percent of the FORTUNE 100 relies on the company’s advanced technologies to manage risks, make better decisions and improve operating efficiency. The company’s analytic solutions address insurance underwriting and claims, fraud, regulatory compliance, natural resources, catastrophes, economic forecasting, geopolitical risks, as well as environmental, social and governance (ESG) matters. Celebrating its 50th anniversary, the company continues to make the world better, safer and stronger, and fosters an inclusive and diverse culture where all team members feel they belong. With more than 100 offices in nearly 35 countries, Verisk consistently earns certification by Great Place to Work. For more: Verisk.com, LinkedIn, Twitter, Facebook and YouTube.

About Duck Creek Technologies

Duck Creek Technologies (Nasdaq: DCT) is a leading provider of core system solutions to the P&C and General insurance industry. By accessing Duck Creek OnDemand, the company’s enterprise Software-as-a-Service solution, insurance carriers are able to navigate uncertainty and capture market opportunities faster than their competitors. Duck Creek’s functionally rich solutions are available on a standalone basis or as a full suite, and all are available via Duck Creek OnDemand.

For further information about Duck Creek Technologies, visit www.duckcreek.com.

Media Contact

Michelle Pantina
551-500-7327
[email protected]

SUNNYVALE, Calif., July 29, 2021 (GLOBE NEWSWIRE) —

John Maddison, EVP of Products and CMO at Fortinet 
“As the digital attack surface expands with billions of edges that need to be protected, organizations are struggling to support an array of point security solutions and disparate services. Solution and services sprawl has now grown too difficult and too expensive to manage when they are siloed across various form factors. According to Gartner, organizations are moving towards security solutions with integrated services offerings. Fortinet is redefining services by expanding its security services options – which currently include FortiCare and FortiGuard – with FortiTrust, enabling a unified offering with one licensing model for flexible consumption options across networks, endpoints and clouds.”

News Summary


Fortinet
® (NASDAQ: FTNT), a global leader in broad, integrated and automated cybersecurity solutions, today announced an expansion to its FortiCare and FortiGuard security services offerings, adding a new security service called FortiTrust. FortiTrust security services offer user-based licensing across all networks, endpoints and clouds, which traditionally have been siloed. Initial service levels are being offered for zero trust network access (ZTNA) and identity verification, with more offerings forthcoming.

Redefining the Future of Security Services with FortiTrust

FortiTrust provides security services that follow the user across an organization’s entire security platform, enabling organizations to easily manage and secure across all form factors. Other benefits of the new offering include:

• Flexible user-based licensing of security services, eliminating the need to track device counts or bandwidth consumption and making it easy to calculate total cost with built in volume discounts
• Integrated single license for security services delivers desired use cases across the Fortinet Security Fabric
• Easy implementation of new security services allows users to transition across various form factors, enabling organizations with hybrid architectures to shift from on-premises to cloud-delivered security
• Easy options to upgrade and migrate between services

Fortinet’s Expanding Security Services Portfolio

FortiTrust adds to Fortinet’s existing FortiCare and FortiGuard security services portfolio. FortiCare services are available for all Fortinet Security Fabric products. FortiCare offers three levels of services, including Essential, Premium and Elite, all providing 24×7 technical support and timely issue resolution. FortiCare also offers several product and account-based services options to address the unique needs of any organization. Through FortiCare, organizations have access to Fortinet experts to help accelerate technology implementation, provide reliable assistance through advanced support, and offer proactive care to maximize security and performance of Fortinet deployments.

FortiGuard Security Services provide organizations different services tied to their Fortinet devices, enabling coordinated and consistent real-time defense for the latest cyberattacks. FortiGuard Security Services are tuned around different customer segments to include individual services for Enterprises, bundles for Commercial, and packages for SMBs. Leveraging industry-leading threat intelligence from FortiGuard Labs, FortiGuard Security Services offer a suite of market-leading, AI-enabled security capabilities that continuously assess risks and automatically adjust protection across the Fortinet Security Fabric.

Updates and additional expansions to these services will be forthcoming.

Security Services that Protect People, Devices and Data Everywhere

The proliferation of new devices and edges along with investments in digital innovations continue to expand the digital attack surface. Many organizations are challenged with protecting across their entire infrastructure as the threat landscape has become much more sophisticated and harder to manage with isolated point products and disparate services. This complexity is compounded with different pricing structures for services and multiple licensing models ranging from device-based, hardware-based and user-based that have remained siloed across form factors.

Expanding on the Fortinet Security Fabric’s ability to protect people, devices, applications and data everywhere, FortiTrust provides organizations a unified services offering to secure across any network, endpoint or cloud with simplified consumption and one licensing model for all form factors. As a result of Fortinet’s expanded services offerings, organizations can further protect the growing digital attack surface, securing critical devices, data, applications, and connections from the data center to the cloud to the home office and more.

FortiTrust Access and FortiTrust Identity

FortiTrust’s initial services portfolio includes FortiTrust Access and FortiTrust Identity with additional services options for SASE and CASB planned to be released. FortiTrust Access enables organizations to deploy zero trust network access (ZTNA) with user-based licensing. Zero trust network access (ZTNA) is crucial to maintaining consistent protection, visibility and control across today’s hybrid and highly distributed networks.

ZTNA enables organizations to extend secure access controls to applications for any user. FortiTrust Access provides organizations services for ZTNA, including the ZTNA agent and cloud-based orchestration. This further builds on Fortinet’s ZTNA solutions which uniquely identify and classify all users and devices seeking network and application access, regardless if users and their devices are on or off the network or applications are on-premises or in a cloud environment.

Another FortiTrust service level is FortiTrust Identity. FortiTrust Identity offers cloud-based multi-factor authentication for identify verification. FortiTrust Identity complements FortiTrust Access, providing the necessary multi-factor authentication recommended for controlling application access.

All Fortinet’s services are also available through partners, presenting an opportunity for channel partners to further grow their business and offerings to customers.

Additional Resources

• Read our blog to learn more about Fortinet’s latest security services with the introduction of FortiTrust.
• 
  Watch
  how Fortinet makes possible a digital world you can always trust.
• 
  View
  how the Fortinet Security Fabric platform delivers broad, integrated, and automated protection across an organization’s entire digital infrastructure.
• Learn more about the Fortinet Open Ecosystem, which provides integrated solutions to customers for comprehensive end-to-end security.
• Read more about how Fortinet customers are securing their organizations.
• Learn more about Fortinet’s free cybersecurity training, an initiative of Fortinet’s Training Advancement Agenda (TAA), or about the Fortinet Network Security Expert program,Security Academy program, and Veterans program.
• Learn more about FortiGuard Labs global threat intelligence and research and the FortiGuard Security Subscriptions and Services portfolio.
• Engage in the Fortinet User Community (Fuse). Share ideas and feedback, learn more about our products and technology, and connect with peers.
• Follow Fortinet on Twitter, LinkedIn, Facebook, and Instagram. Subscribe to Fortinet on YouTube.

About Fortinet

Fortinet (NASDAQ: FTNT) makes possible a digital world that we can always trust through its mission to protect people, devices, applications and data everywhere. This is why the world’s largest enterprises, service providers, and government organizations choose Fortinet to securely accelerate their digital journey. The Fortinet Security Fabric platform delivers broad, integrated, and automated protections across the entire digital attack surface, securing critical devices, data, applications, and connections from the data center to the cloud to the home office. Ranking #1 in the most security appliances shipped worldwide, more than 510,000 customers trust Fortinet to protect their businesses. And the Fortinet NSE Training Institute, an initiative of Fortinet’s Training Advancement Agenda (TAA), provides one of the largest and broadest training programs in the industry to make cyber training and new career opportunities available to everyone. Learn more at https://www.fortinet.com, the Fortinet Blog, or FortiGuard Labs.

FTNT-O

Copyright © 2021 Fortinet, Inc. All rights reserved. The symbols ® and ™ denote respectively federally registered trademarks and common law trademarks of Fortinet, Inc., its subsidiaries and affiliates. Fortinet’s trademarks include, but are not limited to, the following: Fortinet, the Fortinet logo, FortiGate, FortiOS, FortiGuard, FortiCare, FortiAnalyzer, FortiManager, FortiASIC, FortiClient, FortiCloud, FortiCore, FortiMail, FortiSandbox, FortiADC, FortiAI, FortiAP, FortiAppEngine, FortiAppMonitor, FortiAuthenticator, FortiBalancer, FortiBIOS, FortiBridge, FortiCache, FortiCall, FortiCam, FortiCamera, FortiCarrier, FortiCASB, FortiCenter, FortiCentral, FortiConnect, FortiController, FortiConverter, FortiCWP, FortiDB, FortiDDoS, FortiDeceptor, FortiDirector, FortiDNS, FortiEDR, FortiExplorer, FortiExtender, FortiFirewall, FortiFone, FortiGSLB, FortiHypervisor, FortiInsight, FortiIsolator, FortiLocator, FortiLog, FortiMeter, FortiMoM, FortiMonitor, FortiNAC, FortiPartner, FortiPenTest, FortiPhish, FortiPortal, FortiPresence , FortiProtect, FortiProxy, FortiRecorder, FortiReporter, FortiSASE, FortiScan, FortiSDNConnector, FortiSIEM, FortiSDWAN, FortiSMS, FortiSOAR, FortiSwitch, FortiTester, FortiToken, FortiTrust, FortiVoice, FortiVoIP, FortiWAN, FortiWeb, FortiWiFi, FortiWLC, FortiWLCOS and FortiWLM.

Other trademarks belong to their respective owners. Fortinet has not independently verified statements or certifications herein attributed to third parties and Fortinet does not independently endorse such statements. Notwithstanding anything to the contrary herein, nothing herein constitutes a warranty, guarantee, contract, binding specification or other binding commitment by Fortinet or any indication of intent related to a binding commitment, and performance and other specification information herein may be unique to certain environments. This news release may contain forward-looking statements that involve uncertainties and assumptions, such as statements regarding technology releases among others. Changes of circumstances, product release delays, or other risks as stated in our filings with the Securities and Exchange Commission, located at www.sec.gov, may cause results to differ materially from those expressed or implied in this press release. If the uncertainties materialize or the assumptions prove incorrect, results may differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Fortinet assumes no obligation to update any forward-looking statements, and expressly disclaims any obligation to update these forward-looking statements.

Media Contact:	Investor Contact:	Analyst Contact:
Stephanie Lira	Peter Salkowski	Ron Davis
Fortinet, Inc.	Fortinet, Inc.	Fortinet, Inc.
408-235-7700	408-331-4595	415-806-9892
[email protected]	[email protected]	[email protected]

 

CAMBRIDGE, Mass. and CORALVILLE, Iowa, July 29, 2021 (GLOBE NEWSWIRE) — Editas Medicine, Inc. (Nasdaq: EDIT), a leading genome editing company, and Integrated DNA Technologies, Inc. (IDT), a leading comprehensive genomics research solutions provider, today announced the publication of research data demonstrating the advantages of Alt-R™ A.s. Cas12a (Cpf1) Ultra, an engineered AsCas12a nuclease variant, as a tool to eventually enable the development of gene-edited cell medicines. The findings were published in the journal Nature Communications.

“We are thrilled Nature Communications published this collaborative paper demonstrating the advantages of Alt-R A.s. Cas12a (Cpf1) Ultra using multiple pre-clinical models, which has enabled Editas to continue our research and development for gene edited cell medicines,” said, Chris Wilson, Ph.D., Vice President, Lead Discovery, Editas Medicine. “Alt-R A.s. Cas12a (Cpf1) Ultra has shown to substantially improve upon the restricted target space and limited specificity of SpCas9, the most widely used Cas nuclease, and the low editing efficiency of wild type AsCas12a, creating what we believe to be a best-in-class nuclease with editing efficiency near 100 percent across sites in multiple cell lines and high on-target specificity. We believe this proprietary nuclease could have important applications in the development of novel therapies for serious genetic diseases such as sickle cell disease. In addition, we see significant opportunities to create engineered cell therapies for cancer.”

“This exciting research demonstrates that Alt-R A.s. Cas12a (Cpf1) Ultra is a robust gene editing tool while maintaining our desired on-target specificity, making it ideal for complex genomic editing applications,” said Chris Vakulskas, Director of Enzyme Evolution, IDT. “The on-target editing efficiency of Alt-R A.s. Cas12a (Cpf1) Ultra has great potential to expand the genome editing space, alleviate off-targeting editing concerns often observed with SpCas9 enzymes, and reduce the complexity of guide RNA manufacturing.”

The published results detail a directed evolution in bacteria to identify a highly active AsCas12a mutant, Alt-R A.s. Cas12a (Cpf1) Ultra, and demonstrate the variant’s superior on-target editing efficacy compared to Cas9 and AsCas12a. The paper summarizes several experiments of Alt-R A.s. Cas12a (Cpf1) Ultra that demonstrated dramatically elevated knock-out and knock-in efficiency in both cancer cell lines and in human primary cells such as hematopoietic stem and progenitor cells (HSPCs), induced pluripotent stem cells (iPSCs), T cells, and natural killer (NK) cells. Overall, the results support further research for the use of Alt-R A.s. Cas12a (Cpf1) Ultra as an advanced CRISPR nuclease with significant potential future applications.

About Editas Medicine

As a leading genome editing company, Editas Medicine is focused on translating the power and potential of the CRISPR/Cas9 and CRISPR/Cas12a (also known as Cpf1) genome editing systems into a robust pipeline of treatments for people living with serious diseases around the world. Editas Medicine aims to discover, develop, manufacture, and commercialize transformative, durable, precision genomic medicines for a broad class of diseases. For the latest information and scientific presentations, please visit www.editasmedicine.com. 

About IDT

Integrated DNA Technologies, Inc. (IDT) develops, manufactures, and markets nucleic acid products for the life sciences industry in the areas of academic and commercial research, agriculture, medical diagnostics, and pharmaceutical development. IDT has developed proprietary technologies for genomics applications such as next generation sequencing, CRISPR genome editing, synthetic biology, digital PCR, and RNA interference. Through its GMP services, IDT manufactures products used by scientists researching many forms of cancer and most inherited and infectious diseases. IDT is widely recognized as the industry leader in custom nucleic acid manufacture, serving over 130,000 life sciences researchers. IDT was founded in 1987 and has its manufacturing headquarters in Coralville, Iowa, USA, with additional manufacturing sites in San Diego, California, USA; Research Triangle Park, North Carolina, USA; Leuven, Belgium; and Singapore. For more information, please visit www.idtdna.com.

Editas Medicine Forward-Looking Statements

This press release contains forward-looking statements and information within the meaning of The Private Securities Litigation Reform Act of 1995. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “target,” “should,” “would,” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. The Company may not actually achieve the plans, intentions, or expectations disclosed in these forward-looking statements, and you should not place undue reliance on these forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in these forward-looking statements as a result of various factors, including: uncertainties inherent in the initiation and completion of preclinical studies and clinical trials and clinical development of the Company’s product candidates; availability and timing of results from preclinical studies and clinical trials; whether interim results from a clinical trial will be predictive of the final results of the trial or the results of future trials; expectations for regulatory approvals to conduct trials or to market products and availability of funding sufficient for the Company’s foreseeable and unforeseeable operating expenses and capital expenditure requirements. These and other risks are described in greater detail under the caption “Risk Factors” included in the Company’s most recent Annual Report on Form 10-K, which is on file with the Securities and Exchange Commission, as updated by the Company’s subsequent filings with the Securities and Exchange Commission, and in any other subsequent filings made by the Company with the Securities and Exchange Commission. Any forward-looking statements contained in this press release speak only as of the date hereof, and the Company expressly disclaims any obligation to update any forward-looking statements, whether because of new information, future events or otherwise.

 

Editas Medicine Contacts:

Media
Cristi Barnett
(617) 401-0113
[email protected]

Investors
Ron Moldaver
(617) 401-9052
[email protected]

IDT Contacts:

Media
IDT Public Relations
800-328-2661 (USA & Canada)
+1 319-626-8400 (outside USA)
[email protected]
www.idtdna.com    

REDWOOD CITY, Calif., July 29, 2021 (GLOBE NEWSWIRE) — Sumo Logic (Nasdaq: SUMO), a pioneer in continuous intelligence, today announced new capabilities that augment analytics-powered use cases and capture end user experience as part of its Observability solution. As the requirements for modern application Observability push past the limits of traditional, siloed APM, monitoring and logging tools, Sumo Logic is continuously investing to address the evolving needs of customers. Today’s announcement includes Real User Monitoring and Span Analytics, capabilities designed to help DevOps/SRE teams identify and resolve customer-impacting issues faster, reduce application downtime and optimize application performance.

According to Gartner
, “Observability by its very nature must look at the full stack of data available. Looking at a single layer provides only a silo view. To deliver the digital experience necessary to remain competitive, enterprises must go beyond infrastructure and make their digital business observable.”¹

Introducing Sumo Logic Span Analytics

Sumo Logic Span Analytics allows customers to search, analyze and query both structured and unstructured application data, including transaction traces, logs and metrics. This provides observers with a simplified search experience and an ability to filter, transform and aggregate the span data to uncover unknown unknowns that help them to diagnose and resolve problems faster.

With this advanced capability:

• Developers can identify issues and troubleshoot performance problems more quickly by discovering emergent patterns and relationships that are impossible to pre-define, as legacy tools require.
• Teams can leverage the familiar Sumo Logic Query Language to interrogate multiple sets of telemetry, from a single console.
• Similarly, teams can skip the Sumo Logic Query Language and use an intuitive UI to build simple or sophisticated queries and aggregate results.

Monitoring What Matters: The Real User

Inside-out monitoring can often leave end users exposed to poor performance. Real User Monitoring (RUM) arms operations teams with an understanding of the full end-to-end experience of every transaction, starting with a user’s browser click. Sumo Logic RUM provides high-level insights into user experience with the ability to segment by geographical region, OS and browser automatically connecting it to backend troubleshooting information.

With RUM, customers understand the real user experience and troubleshoot problems that originated in code running in the browser. This allows teams to:

• Understand the real user web application performance as experienced in the browser, including network and interaction specific metrics like UI paint events.
• Visualize the code as run in the browser, including local or remote requests and full end-to-end transaction tracing to optimize performance.
• Gather full details about the end-user geolocation, device and browser, including all details about the URL, target element and its Xpath indicating the particular component of the page that was clicked.

“Traditional or siloed monitoring, APM and log management tools do not provide the visibility required for today’s large-scale applications built on modern architectures, leveraging cloud, Kubernetes, serverless and open source. A unified approach to observability, which includes Log, Metrics, Traces and Real User Monitoring, is now table stakes for teams looking to deliver reliable digital services and best-in-class customer experiences,” said Bruno Kurtic, VP of Strategy and Solutions for Sumo Logic. “We’re excited to roll out new capabilities that bring together digital experience management and advanced analytics into one easy-to-use solution.”

Additional Resources

• 
  Read
  our blog to get a closer look at Sumo Logic Span Analytics
• 
  Learn
  how Sumo Logic can help modernize applications and accelerate innovation
• 
  Watch
  this video to learn more about Sumo Logic’s observability solutions
• 
  Sign up for a free trial
  of Sumo Logic

Gartner Disclaimer


Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

About Sumo Logic

Sumo Logic Inc. (Nasdaq: SUMO) is the pioneer in continuous intelligence, a new category of software, which enables organizations of all sizes to address the data challenges and opportunities presented by digital transformation, modern applications, and cloud computing. The Sumo Logic Continuous Intelligence Platform™ automates the collection, ingestion, and analysis of application, infrastructure, security, and IoT data to derive actionable insights within seconds. More than 2,100 customers around the world rely on Sumo Logic to build, run, and secure their modern applications and cloud infrastructures. Only Sumo Logic delivers its platform as a true, multi-tenant SaaS architecture, across multiple use-cases, enabling businesses to thrive in the Intelligence Economy. For more information, visit www.sumologic.com.

Sumo Logic is a trademark or registered trademark of Sumo Logic in the United States and in foreign countries. All other company and product names may be trademarks or registered trademarks of their respective owners.

Any information regarding offerings, updates, functionality, or other modifications, including release dates, is subject to change without notice. The development, release, and timing of any offering, update, functionality, or modification described herein remains at the sole discretion of Sumo Logic, and should not be relied upon in making a purchase decision, nor as a representation, warranty, or commitment to deliver specific offerings, updates, functionalities, or modifications in the future.

Media Contacts

Melissa Liton
Sumo Logic
[email protected]
(650) 814-3882

¹ Gartner, Innovation Insight for Observability, Padraig Byrne | Josh Chessman, Sept. 28, 2020

 

NEW YORK, July 29, 2021 (GLOBE NEWSWIRE) — Better Choice Company (NYSE: BTTR) (“Better Choice”), an animal health and wellness company, will host a conference call and webcast on Thursday, August 12, 2021 at 8:30 a.m. ET to discuss its financial results for the second quarter of 2021 and provide a business update. Additional details are available on the Company’s website: https://betterchoicecompany.com/.

Event:	Better Choice Second Quarter 2021 Earnings Call
Date:	Thursday, August 12, 2021
Time:	8:30 a.m. Eastern Time
Live Call:	+1-855-327-6837 (U.S. Toll-Free) or +1-631-891-4304 (International)
Webcast:	http://public.viavid.com/index.php?id=145923

For interested individuals unable to join the conference call, a dial-in replay of the call will be available until August 26, 2021 and can be accessed by dialing +1-844-512-2921 (U.S. Toll Free) or +1-412-317-6671 (International) and entering replay pin number: 10015865.

About Better Choice Company, Inc.
Better Choice Company Inc. is a growing animal health and wellness company committed to leading the industry shift toward pet products and services that help dogs and cats live healthier, happier and longer lives. We take an alternative, nutrition-based approach to animal health relative to conventional dog and cat food offerings and position our portfolio of brands to benefit from the mainstream trends of growing pet humanization and consumer focus on health and wellness. We have a demonstrated, multi-decade track record of success selling trusted animal health and wellness products and leverage our established digital footprint to provide pet parents with the knowledge to make informed decisions about their pet’s health. We sell the majority of our dog food, cat food and treats under the Halo and TruDog brands, which are focused, respectively, on providing sustainably sourced kibble and canned food derived from real whole meat, and minimally processed raw-diet dog food and treats. For more information, please visit https://www.betterchoicecompany.com.

Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “could,” “target,” “potential,” “is likely,” “will,” “expect” and similar expressions, as they relate to us, are intended to identify forward-looking statements. The Company has based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Some or all of the results anticipated by these forward-looking statements may not be achieved. Further information on the Company’s risk factors is contained in our filings with the SEC. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

Company Contact:

Better Choice Company, Inc.
Scott Lerner, CEO

Investor Contact:

KCSA Strategic Communications
Valter Pinto, Managing Director
PH: 212-896-1254
[email protected]

ASHEVILLE, N.C., July 29, 2021 (GLOBE NEWSWIRE) — HomeTrust Bancshares, Inc. (NASDAQ: HTBI) (“Company”), the holding company of HomeTrust Bank (“Bank”), today announced a preliminary net loss for the fourth quarter of 2021 and approval of its quarterly cash dividend. The loss was driven by expenses previously announced by the Company related to branch closures and the restructuring of its balance sheet. The restructuring included a $19.0 million pre-tax prepayment penalty related to the early retirement of $275.0 million in long-term borrowings for the quarter ended June 30, 2021. In addition, the Company had a pre-tax charge of $1.5 million for costs associated with the pending branch closures.

For the quarter ended June 30, 2021 compared to the corresponding quarter in the previous year:

• net loss was $7.4 million, compared to net income of $3.6 million;
• diluted earnings per share (“EPS”) was ($0.46), compared to $0.22;
• return on assets (“ROA”) was (0.81)%, compared to 0.39%;
• return on equity (“ROE”) was (7.30)%, compared to 3.54%;
• provision for credit losses was a net benefit of $955,000, compared to a provision of $2.7 million;
• noninterest income increased $4.0 million, or 54.5% to $11.2 million from $7.2 million;
• organic net loan growth, which excludes U.S. Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”) loans and purchases of home equity lines of credit, was $76.7 million, or 11.9% annualized compared to $35.3 million, or 5.5% annualized;
• 166,892 shares were repurchased at an average price of $26.56 per share; and
• quarterly cash dividends continued at $0.08 per share totaling $1.3 million.

For the quarter ended June 30, 2021 compared to the corresponding quarter in the previous year and before after-tax prepayment penalties and branch closure charges (non-GAAP):

• adjusted net income was $8.3 million, compared to $3.6 million;
• adjusted diluted EPS was $0.50 compared to $0.22;
• adjusted ROA was 0.91%, compared to 0.39%; and
• adjusted ROE was 8.19%, compared to 3.54%.

For the fiscal year ended June 30, 2021 compared to the previous year:

• net income was $15.7 million, compared to $22.8 million;
• diluted EPS was $0.94, compared to $1.30;
• ROA was 0.42%, compared to 0.63%;
• ROE was 3.88%, compared to 5.54%;
• provision for credit losses was a net benefit of $7.1 million, compared to a provision of $8.5 million;
• noninterest income increased $9.5 million, or 31.3% to $39.8 million from $30.3 million; and
• organic net loan growth, which excludes PPP loans and purchases of home equity lines of credit, was $31.0 million, or 1.2% compared to $183.3 million, or 7.1%.

For the fiscal year ended June 30, 2021 compared to the previous year and before after-tax prepayment penalties and branch closure charges (non-GAAP):

• adjusted net income was $34.2 million, compared to $22.8 million;
• adjusted diluted EPS was $2.06, compared to $1.30;
• adjusted ROA was 0.92%, compared to 0.63%; and
• adjusted ROE was 8.47%, compared to 5.54%.

The Company also announced today that its Board of Directors declared a quarterly cash dividend of $0.08 per common share payable on September 2, 2021 to shareholders of record as of the close of business on August 19, 2021.

The reconciliation of non-GAAP measures, which the Company believes facilitates the assessment of its banking operations and peer comparability, is included in tabular form at the end of this release.

“Despite the challenges faced during this pandemic, our bankers continue to perform at the highest levels within our business lines leading to strong performance for the quarter,” said Dana Stonestreet, Chairman, President, and Chief Executive Officer. “As previously announced, our GAAP net income includes a $14.6 million after-tax prepayment penalty on the early termination of the $275 million remaining long-term borrowings and $1.2 million of after-tax costs associated with our plan to close nine branches towards the end of next quarter. On an adjusted basis, we earned $8.3 million as compared to $3.6 million in the same quarter last year, largely driven by our increase in gain on sale of loans held for sale and a benefit for credit losses compared to a provision for credit losses in the prior comparable quarter.

“We continue to focus on strategic initiatives to enhance profitability by reducing ongoing costs and increasing revenues in all our lines of business. We had another record gain on sale of SBA loans of $2.4 million up 755% over the same quarter last year. As of July 1, 2021, we have successfully transitioned our SBA servicing operations from a loan service provider to full back-room operations in-house to increase gain on sale and create servicing income. And we continue to focus on increasing SBA loan origination volume to lever this investment and increase profitability. Our mortgage area produced another strong quarter with the sale of $106 million in residential mortgages resulting in a gain of $2.8 million which was up 52% over the same period a year ago. Our equipment finance division had another strong year as the portfolio grew $89 million to $340 million which was a 35% increase since June 30, 2020.

“Credit quality continues to hold up nicely reflecting the financial strength of our borrowers who have been able to navigate through the pandemic,” continued Stonestreet. “While smaller than the allowance releases in the two previous quarters, the improvement in the economic forecast and continued strong credit metrics allowed us to recognize a benefit for credit losses of $955,000 for the quarter. With the prepayment of higher cost borrowings behind us, our announced branch closure plan to lower costs, our transition of SBA servicing to in-house, and our diversified lines of business that we continue to grow, we’re well positioned to achieve higher profitability and to create additional shareholder value as we begin a new fiscal year.”

COVID-19 Update

Loan Programs.
The Company participated in the SBA PPP during calendar year 2020 and 2021. During the quarter ended June 30, 2021, the program’s funds were depleted and subsequently the Company ended its participation. The Company originated a total of $112.0 million or 469 PPP loans under the program throughout the pandemic, which included a total of $31.2 million in PPP loans for calendar year 2021. As of June 30, 2021, PPP loans totaled $46.7 million, which included $1.1 million in net deferred fees that will be accreted into interest income over the remaining life of the loans, unless the loans are forgiven at which point these fees would be accelerated into income. For the three and twelve months ended June 30, 2021, the Company earned $416,000 and $1.8 million, respectively, in fees through accretion including some accelerated accretion resulting from loan forgiveness. The Company has worked with the SBA and its customers to forgive a total of $64.2 million in PPP loans during its participation in the program.

Loan Modifications.
During the quarter ended June 30, 2021, there were no new COVID-19 loan modifications for full deferral of principal and interest nor partial deferral of interest only. Substantially all loans placed on full payment deferral during the pandemic have come out of deferral and borrowers are either making regular loan payments or interest-only payments until the latter part of calendar year 2021. As of June 30, 2021, the Company had $78.9 million in commercial loan deferrals on interest-only payments. As of June 30, 2021, the Company had $107,000 in loans with full principal and interest payment deferrals. The Company continues to work with its customers to determine the best option for repayment of accrued interest on the deferred payments.

Branch Operations.
Throughout the pandemic the Bank has provided banking services with a focus on the health and safety of its customers and employees. The Bank continues to monitor the effects of customer behavior specific to in-person branch transactions and has experienced meaningful increases in digital banking activity and online deposit account openings. Partially in response to these changes, the Bank recently announced its plans to close nine branches in North Carolina, Tennessee, and Virginia. The Company continues to respond to the banking needs of its customers whether through physical branch locations and/or digital banking services.

Income Statement Review

Net interest income increased to $26.0 million for the quarter ended June 30, 2021, compared to $24.7 million for the comparative quarter in fiscal 2020. Interest and dividend income decreased by $2.3 million, or 7.3%, primarily driven by lower yields on loans and commercial paper as a result of lower federal funds and other market interest rates. This decrease was more than offset by a $3.6 million decrease in interest expense. Average interest-earning assets decreased $16.6 million, or 0.49% to $3.4 billion for the quarter ended June 30, 2021. The average balance of total loans receivable increased by $6.3 million, or 0.23% compared to the same quarter last year. The average balance of commercial paper and deposits in other banks decreased $26.0 million, or 5.7% driven by the Company purchasing higher yielding available for sale securities and using excess liquidity to pay down borrowings between the periods. The Company’s investments in commercial paper have short-term maturities and limited exposure of $15.0 million or less per each highly-rated company. The average balance in securities available for sale increased $14.9 million, or 10.4%. The average balance in other investments at cost decreased $11.8 million, or 29.2% as a result of Federal Home Loan Bank stock being sold in relation to the paydown of borrowings. Net interest margin (on a fully taxable-equivalent basis) for the three months ended June 30, 2021 increased to 3.10% from 2.92% for the same period a year ago.

Total interest and dividend income decreased $2.3 million, or 7.3% for the three months ended June 30, 2021 as compared to the same period last year, which was primarily driven by a $1.3 million, or 73.2% decrease in interest income from commercial paper and deposits in other banks, a $774,000, or 2.8% decrease in interest income from loans, and a $290,000, or 36.9% decrease in interest income from securities available for sale. The lower interest income in each category was driven by the decrease in yields caused by the significant reduction in current market rates compared to the same quarter last year. Average loan yields decreased 11 basis points to 3.95% for the quarter ended June 30, 2021 from 4.06% in the corresponding quarter last year. Average yields on commercial paper and deposits in other banks decreased 110 basis points to 0.44% for the quarter ended June 30, 2021 from 1.54% in the corresponding quarter last year. Average yields on securities available for sale decreased 95 basis points to 1.26% for the quarter ended June 30, 2021 from 2.21% in the corresponding quarter last year.

Total interest expense decreased $3.6 million, or 56.0% for the quarter ended June 30, 2021 compared to the same period last year. The decrease was driven by a $2.9 million, or 62.2% decrease in interest expense on deposits and a $660,000, or 39.0% decrease in interest expense on borrowings. Average interest-bearing deposits for the quarter ended June 30, 2021 increased $152.0 million, or 7.0%, which was more than offset by the 56 basis point decrease in cost of deposits, down to 0.31% compared to 0.87% in the same period last year. Average borrowings for the quarter ended June 30, 2021 decreased $258.1 million, or 50.6% compared to the same period last year as a result of the previously mentioned balance sheet restructuring. The increase in average deposits (interest and noninterest-bearing) was due to successful deposit gathering campaigns and funds from PPP loans and other government stimulus. The overall average cost of funds decreased 51 basis points to 0.44% for the current quarter compared to 0.95% in the same quarter last year. The decrease in the average cost of funds was driven by the lower federal funds rate during the current quarter compared to the prior year.

Net interest income decreased to $103.3 million for the year ended June 30, 2021, compared to $104.1 million in fiscal 2020. The $782,000, or 0.8% decrease was due to a $17.5 million decrease in interest and dividend income partially offset by a $16.7 million decrease in interest expense, both of which were driven primarily by the lower rate environment in the current fiscal year. Average interest-earning assets increased $115.6 million, or 3.5% to $3.4 billion for the year ended June 30, 2021 compared to $3.3 billion in prior year. The average balance of total loans receivable increased by $71.1 million, or 2.6% compared to last year. The average balance of commercial paper and deposits in other banks increased $62.5 million, or 16.2% during fiscal 2021. These increases were funded by a $12.4 million, or 8.2% decrease in securities available for sale, a $5.6 million, or 13.3% decrease in other interest-earning assets and a $149.2 million, or 4.8% increase in average deposits (interest and noninterest-bearing) and borrowings as compared to last year. Net interest margin (on a fully taxable-equivalent basis) for the year ended June 30, 2021 decreased to 3.04% from 3.17% in prior year.

Total interest and dividend income decreased $17.5 million, or 12.9% for the year June 30, 2021 as compared to last year, which was primarily driven by a $10.4 million, or 8.5% decrease in interest income from loans, a $5.1 million, or 66.6% decrease in interest income from commercial paper and deposits in other banks, a $1.7 million, or 45.1% decrease in interest income from securities available for sale, and a $356,000, or 13.2% decrease in interest income from other interest-earning assets. The lower interest income was driven by the decrease in market yields compared to the prior year. Average loan yields decreased 48 basis points to 4.01% for the year ended June 30, 2021 from 4.49% last year. Average yields on commercial paper and deposits in other banks decreased 143 basis points to 0.57% for the year ended June 30, 2021 from 2.00% in the prior year. Average yields on securities available for sale decreased 98 basis points to 1.47% for the year ended June 30, 2021 from 2.45% in the prior year.

Total interest expense decreased $16.7 million, or 52.1% for the year ended June 30, 2021 compared to last year. The decrease was driven by a $13.5 million, or 59.0% decrease in interest expense on deposits and a $3.3 million, or 35.1% decrease in interest expense on borrowings. The $116.1 million, or 5.4% increase in average interest-bearing deposits for the year ended June 30, 2021 was more than offset by the 65 basis point decrease down to 0.41% in the corresponding cost of deposits compared to 1.06% in the prior year. Average borrowings for the year ended June 30, 2021 decreased $151.6 million, or 26.7% along with a 19 basis point decrease in the average cost of borrowings compared to last year. The overall average cost of funds decreased 61 basis points to 0.57% for the year ended June 30, 2021 compared to 1.18% last year due primarily to the impact of the lower amount of borrowings and rates.

Noninterest income increased $3.9 million, or 54.5% to $11.2 million for the three months ended June 30, 2021 from $7.2 million for the same period in the previous year primarily due to a $3.1 million, or 128.9% increase in gain on sale of loans, a $372,000, or 20.1% increase in other noninterest income, and a $346,000, or 17.0% increase in service charges and fees on deposit accounts. The increase in gain on the sale of loans was primarily driven by an increase in gains from sales of SBA and mortgage loans. During the quarter ended June 30, 2021, $21.4 million of the guaranteed portion of SBA commercial loans were sold with gains of $2.4 million compared to $4.0 million sold with gains of $286,000 in the corresponding quarter in the prior year. There were $105.6 million of residential mortgage loans originated for sale which were sold with gains of $2.8 million compared to $68.6 million sold with gains of $1.9 million in the corresponding quarter in the prior year. In addition, $24.9 million of home equity loans were sold during the quarter ended June 30, 2021 for a gain of $164,000 compared to $53.1 million sold with gains of $232,000 in the corresponding quarter. The increase in other noninterest income was driven by a $353,000, or 31.0% increase in operating lease income from the continued growth in the equipment finance line of business. The increase in service charges and fees on deposit accounts was primarily related to higher debit card fees as customers have begun to increase spending as a result of the broader market recovery from the pandemic.

Noninterest income increased $9.5 million, or 31.3% to $39.8 million for the year ended June 30, 2021 from $30.3 million last year primarily due to a $7.4 million, or 74.5% increase in gain on sale of loans and a $2.8 million, or 44.0% increase in other noninterest income, partially offset by a $299,000, or 3.2% decrease in service charges and fees on deposit accounts, and a $286,000, or 11.5% decrease in loan income and fees. The increase in gain on the sale of loans was driven by an increase in sales of mortgage, SBA, and home equity loans. There were $406.5 million of residential mortgage loans originated for sale which were sold with gains of $10.5 million compared to $203.9 million sold with gains of $5.4 million in the prior year. Included in the prior year’s gain on sale of loans was an additional $1.3 million non-recurring gain related to one-to-four family portfolio loans of $154.9 million reclassed to loans held for sale that were sold during the year. During the year ended June 30, 2021, $66.1 million of the guaranteed portion of SBA commercial loans were sold with gains of $6.1 million compared to $38.1 million sold with gains of $2.8 million in the prior year. In addition, $110.8 million of home equity loans were sold during the year ended June 30, 2021 with gains of $724,000 compared to $71.1 million sold with gains of $415,000 in the prior year. The increase in other noninterest income was driven by a $2.2 million, or 66.9% increase in operating lease income from the equipment finance business and a $538,000, or 63.4% increase in the investment services line of business. The decrease in service charges and fees on deposit accounts was primarily related to lower nonsufficient fund fees as customers decreased spending during the pandemic. The decrease in loan income and fees was primarily a result of lower fees from the Company’s adjustable rate conversion program.

Noninterest expense for the three months ended June 30, 2021 increased $23.6 million, or 95.6% to $48.2 million compared to $24.7 million for the three months ended June 30, 2020. The increase was driven by the $19.0 million prepayment penalty on the early retirement of borrowings and to a lesser extent the $1.5 million charge related to the branch closures, all of which are related to the Company’s balance sheet restructuring and profitability improvement plan. In addition, there was a $2.1 million, or 14.8% increase in salaries and employee benefits as a result of new positions, mortgage loan origination incentives, and annual salary increases; a $527,000, or 14.0% increase in other expenses, mainly driven by depreciation from the Company’s equipment finance line of business; a $499,000, or 319.9% increase in marketing and advertising expense related to our post-pandemic full geographic footprint marketing campaign; a $379,000, or 17.9% increase in computer services as a result of increased processing charges; and a $254,000, or 11.3% increase in net occupancy expense from investments in infrastructure. Partially offsetting these increases was a cumulative decrease of $209,000, or 18.7% in telephone, postage, and supplies expense and core deposit intangible amortization for the three months ended June 30, 2021 compared to the same period last year. In addition, there was a $522,000, or 81.3% decrease in real estate owned (“REO”) related expenses as a result of fewer properties held, no post-foreclosure writedowns, and additional legal expenses in the prior year’s quarter related to one commercial property.

Noninterest expense for the year ended June 30, 2021 increased $34.1 million, or 35.1% to $131.2 million compared to $97.1 million last year. The increase was primarily due to $22.7 million in prepayment penalties on borrowings and $1.5 million in branch closure and restructuring charges previously mentioned. In addition, there was a $6.2 million, or 11.0% increase in salaries and employee benefits; a $2.9 million, or 20.8% increase in other expenses, driven by depreciation from the Company’s equipment finance line of business; a $1.5 million, or 17.8% increase in computer services; an $899,000 increase in deposit insurance premiums as a result of credits issued by the Federal Deposit Insurance Corporation being utilized in the prior year period; and a $293,000, or 3.2% increase in net occupancy expense. Partially offsetting these increases was a $686,000, or 48.3% decrease in core deposit intangible amortization and a cumulative decrease of $399,000, or 7.8% in telephone, postage, and supplies expense; and marketing and advertising expense for the year ended June 30, 2021 compared to last year. In addition, there was a $893,000, or 60.5% decrease in REO related expenses as a result of fewer properties held, no post-foreclosure writedowns, and a gain on the sale of REO in the current period compared to a loss last year.

For the three months ended June 30, 2021, the Company’s net income tax benefit was $2.7 million driven by the quarter’s pretax loss compared to income tax expense of $964,000 in the corresponding quarter of last year.

For the year ended June 30, 2021, the Company’s income tax expense decreased $2.6 million, or 43.2% to $3.4 million from $6.0 million as a result of lower taxable income. The effective tax rate for the year ended June 30, 2021 and 2020 was 17.9% and 20.9%, respectively.

Balance Sheet Review

Total assets and liabilities decreased by $198.1 million and $186.4 million down to $3.5 billion and $3.1 billion, respectively, at June 30, 2021 as compared to June 30, 2020. The cumulative decrease of $201.6 million, or 41.8% in cash and cash equivalents, commercial paper, and certificates of deposits in other banks; along with the $169.8 million, or 6.1% increase in deposits was used to pay down borrowings by $360.0 million. The $16.4 million, or 21.2% increase in loans held for sale primarily relates to additional one-to-four family and home equity loans originated for sale during the period. The $15.2 million, or 39.1% decrease in other investments, at cost was due to Federal Home Loan Bank (“FHLB”) stock being sold back in connection with the previously mentioned paydown of borrowings.

Total loans decreased $35.9 million, or 1.3% to $2.7 billion at June 30, 2021. The decrease was driven by PPP loan forgiveness totaling $34.0 million, the continued payoff of purchased HELOCs of $32.8 million, partially offset by $31.0 million in organic loan growth.

Total deposits increased $169.8 million, or 6.1% to $3.0 billion at June 30, 2021 from $2.8 billion at June 30, 2020 which was driven by a $436.2 million, or 21.3% increase in core deposits as a result of additional funds to customers from government stimulus and the Company’s focused effort to realign the deposit mix. Partially offsetting the increase was a managed runoff of certificates of deposit and brokered deposits totaling $266.4 million, or 36.0% down to $472.8 million at June 30, 2021. Total borrowings decreased $360.0 million, or 75.8% to $115.0 million at June 30, 2021 from $475.0 million at June 30, 2020 due to the early retirement of $475.0 million in long-term FHLB borrowings partially offset by $115.0 million in additional borrowings at lower rates and 30-day maturities.

On July 1, 2020, the Company adopted the current expected credit loss (“CECL”) accounting standard in accordance with Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The cumulative effect adjustment from this change in accounting policy resulted in an increase in its allowance for credit losses for loans of $14.8 million, additional deferred tax assets of $3.9 million, additional reserve for unfunded loan commitments of $2.3 million, and a reduction to retained earnings of $13.2 million. In addition, an allowance for credit loss for commercial paper was established for $250,000 with a deferred tax asset of $58,000. The adoption of this ASU did not have an effect on available for sale debt securities for the year ended June 30, 2021.

Stockholders’ equity at June 30, 2021 decreased $11.7 million, or 2.9% to $396.5 million compared to $408.3 million at June 30, 2020. Changes within stockholders’ equity included $15.7 million in net income and $6.7 million in stock-based compensation and stock option exercises, offset by $13.4 million related to the adoption of the new CECL accounting standard, 733,347 shares of common stock being repurchased at an average cost of $22.03, or approximately $16.2 million in total, and $5.0 million related to cash dividends declared. As of June 30, 2021, the Bank was considered “well capitalized” in accordance with its regulatory capital guidelines and exceeded all regulatory capital requirements.

Asset Quality

The allowance for credit losses was $35.5 million, or 1.30% of total loans, at June 30, 2021 compared to $28.1 million, or 1.01% of total loans, at June 30, 2020. The allowance for credit losses to total gross loans excluding PPP loans was 1.32% at June 30, 2021, compared to 1.04% at June 30, 2020. The overall increase was driven by additional allowance stemming from the Company’s adoption of the new CECL accounting standard.

Provision for credit losses was a net benefit of $7.1 million for the fiscal year ended June 30, 2021, compared to a $8.5 million provision for fiscal year 2020. The net benefit of provision was primarily driven by changes in the economic forecast which continue to improve since the adoption of the standard. Net loan recoveries totaled $309,000 for the three months ended June 30, 2021, compared to net charge-offs of $1.5 million for the same period last year. Net recoveries as a percentage of average loans were (0.04)% for the quarter ended June 30, 2021 compared to net charge-offs of 0.21% for the corresponding quarter in 2020. Net loan charge-offs totaled $143,000 and $1.9 million for the fiscal years ended June 30, 2021 and 2020, respectively. Net charge-offs as a percentage of average loans were 0.01% and 0.07% for each of the fiscal years ended June 30, 2021 and 2020, respectively.

Nonperforming assets decreased by $3.5 million, or 21.3% to $12.8 million, or 0.36% of total assets at June 30, 2021 compared to $16.3 million, or 0.44% of total assets at June 30, 2020. Nonperforming assets included $12.6 million in nonaccruing loans and $188,000 in REO at June 30, 2021, compared to $15.9 million and $337,000 in nonaccruing loans and REO, respectively, at June 30, 2020. Included in nonperforming loans as of June 30, 2021 were $5.5 million of loans restructured from their original terms of which $4.2 million were current at June 30, 2021, with respect to their modified payment terms. Nonperforming loans to total loans was 0.46% at June 30, 2021 and 0.58% at June 30, 2020.

The ratio of classified assets to total assets decreased to 0.64% at June 30, 2021 from 0.84% at June 30, 2020 due to the decrease in classified loans during fiscal 2021. Classified assets decreased to $22.4 million at June 30, 2021 compared to $31.1 million at June 30, 2020 primarily due to $5.7 million in payoffs, $1.6 million in charge-offs, and $950,000 in upgrades during the period. The Company’s overall asset quality metrics continue to demonstrate its commitment to growing and maintaining a loan portfolio with a moderate risk profile; however, the Company will remain diligent in its review of the portfolio and overall economy as it continues to maneuver through the uncertainty surrounding COVID-19.

About HomeTrust Bancshares, Inc.

HomeTrust Bancshares, Inc. is the holding company for HomeTrust Bank. As of June 30, 2021, the Company had assets of $3.5 billion. The Bank, founded in 1926, is a North Carolina state chartered, community-focused financial institution committed to providing value added relationship banking with over 40 locations as well as online/mobile channels. Locations include: North Carolina (including the Asheville metropolitan area, the “Piedmont” region, Charlotte, and Raleigh/Cary), Upstate South Carolina (Greenville), East Tennessee (including Kingsport/Johnson City/Bristol, Knoxville, and Morristown) and Southwest Virginia (including the Roanoke Valley). HomeTrust Bancshares, Inc. is the 2nd largest publicly traded community bank holding company headquartered in North Carolina.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements often include words such as “believe,” “expect,” “anticipate,” “estimate,” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” Forward-looking statements are not historical facts but instead represent management’s current expectations and forecasts regarding future events, many of which are inherently uncertain and outside of our control. Actual results may differ, possibly materially, from those currently expected or projected in these forward-looking statements. Factors that could cause our actual results to differ materially from those described in the forward-looking statements include: the effect of the COVID-19 pandemic, including on our credit quality and business operations, as well as its impact on general economic and financial market conditions and other uncertainties resulting from the COVID-19 pandemic, such as the extent and duration of the impact on public health, the U.S. and global economies, and consumer and corporate customers, including economic activity, employment levels and market liquidity; increased competitive pressures; changes in the interest rate environment; changes in general economic conditions and conditions within the securities markets; legislative and regulatory changes; and other factors described in HomeTrust’s latest annual Report on Form 10-K and Quarterly Reports on Form 10-Q and other documents filed with or furnished to the Securities and Exchange Commission – which are available on our website at www.htb.com and on the SEC’s website at www.sec.gov. Any of the forward-looking statements that we make in this press release or the documents we file with or furnish to the SEC are based upon management’s beliefs and assumptions at the time they are made and may turn out to be wrong because of inaccurate assumptions we might make, because of the factors described above or because of other factors that we cannot foresee. We do not undertake and specifically disclaim any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. These risks could cause our actual results for fiscal 2022 and beyond to differ materially from those expressed in any forward-looking statements by, or on behalf of, us and could negatively affect our operating and stock performance.

WEBSITE: WWW.HOMETRUSTBANCSHARES.COM


Contact:

Dana L. Stonestreet – Chairman, President and Chief Executive Officer
Tony J. VunCannon – Executive Vice President, Chief Financial Officer, Corporate Secretary and Treasurer
828-259-3939

Consolidated Balance Sheets (Unaudited)

(Dollars in thousands)	June 30, 2021				March 31, 2021				December 31, 2020				September 30, 2020				June 30, 2020 (1)
Assets
Cash	$	22,312			$	24,621			$	27,365			$	29,472			$	31,908
Interest-bearing deposits	28,678				139,474				198,979				141,672				89,714
Cash and cash equivalents	50,990				164,095				226,344				171,144				121,622
Commercial paper	189,596				238,445				183,778				204,867				304,967
Certificates of deposits	40,122				42,015				48,637				52,361				55,689
Debt securities available for sale, at fair value	156,459				162,417				153,540				96,159				127,537
Other investments, at cost	23,710				28,899				39,572				38,949				38,946
Loans held for sale	93,539				86,708				118,439				124,985				77,177
Total loans, net of deferred loan fees and costs	2,733,267				2,690,153				2,678,624				2,769,396				2,769,119
Allowance for credit losses	(35,468		)		(36,059		)		(39,844		)		(43,132		)		(28,072		)
Net loans	2,697,799				2,654,094				2,638,780				2,726,264				2,741,047
Premises and equipment, net	70,909				70,886				70,104				59,418				58,462
Accrued interest receivable	7,933				8,271				9,796				10,648				12,312
Real estate owned (“REO”)	188				143				252				144				337
Deferred income taxes	16,901				16,889				18,626				19,209				16,334
Bank owned life insurance (“BOLI”)	93,108				93,877				93,326				92,775				92,187
Goodwill	25,638				25,638				25,638				25,638				25,638
Core deposit intangibles	343				473				638				840				1,078
Other assets	57,488				55,763				52,501				50,633				49,519
Total Assets	$	3,524,723			$	3,648,613			$	3,679,971			$	3,674,034			$	3,722,852
Liabilities and Stockholders’ Equity
Liabilities
Deposits	$	2,955,541			$	2,908,478			$	2,743,269			$	2,742,046			$	2,785,756
Borrowings	115,000				275,000				475,000				475,000				475,000
Other liabilities	57,663				58,683				56,978				56,637				53,833
Total liabilities	3,128,204				3,242,161				3,275,247				3,273,683				3,314,589
Stockholders’ Equity
Preferred stock, $0.01 par value, 10,000,000 shares authorized, none issued or outstanding	—				—				—				—				—
Common stock, $0.01 par value, 60,000,000 shares authorized (2)	167				167				168				170				170
Additional paid in capital	160,582				162,010				166,352				170,204				169,648
Retained earnings	240,075				248,767				242,182				234,023				242,776
Unearned Employee Stock Ownership Plan (“ESOP”) shares	(5,819		)		(5,951		)		(6,083		)		(6,216		)		(6,348		)
Accumulated other comprehensive income	1,514				1,459				2,105				2,170				2,017
Total stockholders’ equity	396,519				406,452				404,724				400,351				408,263
Total Liabilities and Stockholders’ Equity	$	3,524,723			$	3,648,613			$	3,679,971			$	3,674,034			$	3,722,852

__________________________________________
(1)    Derived from audited financial statements.
(2)    Shares of common stock issued and outstanding were 16,636,483 at June 30, 2021; 16,655,347 at March 31, 2021; 16,791,027 at December 31, 2020; 17,020,724 at September 30, 2020; and 17,021,357 at June 30, 2020.

Consolidated Statement of Income (Loss) (Unaudited)

	Three Months Ended												Year Ended
(Dollars in thousands)	June 30, 2021				March 31, 2021				June 30, 2020 (1)				June 30, 2021				June 30, 2020 (1)
Interest and Dividend Income
Loans	$	27,234			27,629				$	28,008			$	111,798			$	122,174
Commercial paper and interest-bearing deposits	467				611				1,740				2,573				7,699
Securities available for sale	496				496				786				2,024				3,687
Other investments	609				585				540				2,338				2,694
Total interest and dividend income	28,806				29,321				31,074				118,733				136,254
Interest Expense
Deposits	1,774				1,996				4,692				9,370				22,837
Borrowings	1,034				1,632				1,694				6,041				9,313
Total interest expense	2,808				3,628				6,386				15,411				32,150
Net Interest Income	25,998				25,693				24,688				103,322				104,104
Provision (Benefit) for Credit Losses	(955		)		(4,100		)		2,700				(7,135		)		8,500
Net Interest Income after Provision (Benefit) for Credit Losses	26,953				29,793				21,988				110,457				95,604
Noninterest Income
Service charges and fees on deposit accounts	2,376				2,194				2,030				9,083				9,382
Loan income and fees	529				636				447				2,208				2,494
Gain on sale of loans held for sale	5,423				4,881				2,369				17,352				9,946
BOLI income	605				508				522				2,156				2,246
Other, net	2,227				2,459				1,855				9,022				6,264
Total noninterest income	11,160				10,678				7,223				39,821				30,332
Noninterest Expense
Salaries and employee benefits	16,265				15,784				14,172				62,956				56,709
Net occupancy expense	2,511				2,456				2,256				9,521				9,228
Computer services	2,499				2,581				2,121				9,607				8,153
Telephone, postage, and supplies	777				812				813				3,122				3,275
Marketing and advertising	655				319				156				1,626				1,872
Deposit insurance premiums	438				363				426				1,799				900
Loss (gain) on sale and impairment of REO	(16		)		(14		)		448				(65		)		536
REO expense	136				98				193				647				939
Core deposit intangible amortization	130				165				303				735				1,421
Branch closure and restructuring expenses	1,513				—				—				1,513				—
Prepayment penalties on borrowings	19,034				3,656				—				22,690				—
Other	4,291				4,286				3,764				17,031				14,096
Total noninterest expense	48,233				30,506				24,652				131,182				97,129
Income (Loss) Before Income Taxes	(10,120		)		9,965				4,559				19,096				28,807
Income Tax Expense (Benefit)	(2,712		)		2,096				964				3,421				6,024
Net Income (Loss)	$	(7,408	)		$	7,869			$	3,595			$	15,675			$	22,783

__________________________________________
(1)    Derived from audited financial statements.

Per Share Data

		Three Months Ended												Year Ended
		June 30, 2021				March 31, 2021				June 30, 2020				June 30, 2021				June 30, 2020
Net income (loss) per common share:(1)
Basic		$	(0.46	)		$	0.49			$	0.22			$	0.96			$	1.34
Diluted		$	(0.46	)		$	0.48			$	0.22			$	0.94			$	1.30
Average shares outstanding:
Basic		15,894,342				15,979,590				16,217,185				16,078,066				16,729,056
Diluted		15,894,342				16,485,718				16,489,125				16,495,115				17,292,239
Book value per share at end of period		$	23.83			$	24.40			$	23.99			$	23.83			$	23.99
Tangible book value per share at end of period (2)		$	22.28			$	22.84			$	22.43			$	22.28			$	22.43
Cash dividends declared per common share		$	0.08			$	0.08			$	0.07			$	0.31			$	0.25
Total shares outstanding at end of period		16,636,483				16,655,347				17,021,357				16,636,483				17,021,357

__________________________________________
(1)    Basic and diluted net income (loss) per common share have been prepared in accordance with the two-class method.
(2)    See Non-GAAP reconciliations below for adjustments.

Selected Financial Ratios and Other Data

		Three Months Ended										Year Ended
		June 30, 2021				March 31, 2021			June 30, 2020			June 30, 2021			June 30, 2020
Performance ratios: (1)
Return on assets (ratio of net income (loss) to average total assets)		(0.81	)	%		0.84	%		0.39	%		0.42	%		0.63	%
Return on equity (ratio of net income (loss) to average equity)		(7.30	)			7.78			3.54			3.88			5.54
Tax equivalent yield on earning assets(2)		3.43				3.44			3.66			3.49			4.13
Rate paid on interest-bearing liabilities		0.44				0.54			0.95			0.57			1.18
Tax equivalent average interest rate spread(2)		2.99				2.90			2.71			2.92			2.95
Tax equivalent net interest margin(2) (3)		3.10				3.02			2.92			3.04			3.17
Average interest-earning assets to average interest-bearing liabilities		132.52				127.59			127.89			128.01			122.10
Operating expense to average total assets		5.26				3.25			2.67			3.55			2.70
Efficiency ratio		129.81				83.87			77.25			91.64			72.25
Efficiency ratio – adjusted(4)		73.86				73.17			76.51			74.08			71.62

__________________________________________
(1) Ratios are annualized where appropriate.
(2) The weighted average rate for municipal leases is adjusted for a 24% combined federal and state tax rate since the interest from these leases is tax exempt.
(3) Net interest income divided by average interest-earning assets.
(4) See Non-GAAP reconciliations below for adjustments.

		At or For the Three Months Ended
		June 30, 2021				March 31, 2021				December 31, 2020				September 30, 2020			June 30, 2020
Asset quality ratios:
Nonperforming assets to total assets(1)		0.36		%		0.37		%		0.40		%		0.40	%		0.44	%
Nonperforming loans to total loans(1)		0.46				0.49				0.54				0.52			0.58
Total classified assets to total assets		0.64				0.76				0.74				0.73			0.84
Allowance for credit losses to nonperforming loans(1)		281.38				272.64				274.05				299.11			176.30
Allowance for credit losses to total loans		1.30				1.34				1.49				1.56			1.01
Allowance for credit losses to total gross loans excluding PPP loans and acquired loans(2)		1.32				1.38				1.52				1.61			1.04
Net charge-offs (recoveries) to average loans (annualized)		(0.04	)			(0.03	)			(0.01	)			0.10			0.21
Capital ratios:
Equity to total assets at end of period		11.25		%		11.14		%		11.00		%		10.90	%		10.97	%
Tangible equity to total tangible assets(2)		10.59				10.50				10.36				10.25			10.33
Average equity to average assets		11.06				10.79				10.95				10.85			11.02

__________________________________________
(1)    Nonperforming assets include nonaccruing loans, consisting of certain restructured loans, and REO. There were no accruing loans more than 90 days past due at the dates indicated. At June 30, 2021, there were $5.5 million of restructured loans included in nonaccruing loans and $6.6 million, or 52.6%, of nonaccruing loans were current on their loan payments as of that date. Purchased impaired loans acquired through acquisitions are excluded from nonaccruing loans due to the accretion of discounts in accordance with the acquisition method of accounting for business combinations.
(2)    See Non-GAAP reconciliations below for adjustments.

Average Balance Sheet Data

	Three Months Ended June 30,
	2021											2020
(Dollars in thousands)	Average Balance Outstanding				Interest Earned/ Paid(2)				Yield/ Rate(2)			Average Balance Outstanding				Interest Earned/ Paid(2)				Yield/ Rate(2)
Assets:
Interest-earning assets:
Loans receivable (1)	$	2,796,063			$	27,559			3.95	%		$	2,789,751			$	28,319			4.06	%
Commercial paper and deposits in other banks	427,056				467				0.44	%		453,038				1,740				1.54	%
Debt securities available for sale	157,455				496				1.26	%		142,601				786				2.21	%
Other interest-earning assets(3)	28,658				609				8.52	%		40,490				540				5.34	%
Total interest-earning assets	3,409,232				29,131				3.43	%		3,425,880				31,385				3.66	%
Other assets	260,365											263,212
Total Assets	3,669,597											3,689,092
Liabilities and equity:
Interest-bearing liabilities:
Interest-bearing checking accounts	657,748				411				0.25	%		481,314				522				0.43	%
Money market accounts	948,739				363				0.15	%		772,823				1,150				0.60	%
Savings accounts	225,385				41				0.07	%		166,216				42				0.10	%
Certificate accounts	489,155				959				0.79	%		748,722				2,978				1.59	%
Total interest-bearing deposits	2,321,027				1,774				0.31	%		2,169,075				4,692				0.87	%
Borrowings	251,538				1,034				1.65	%		509,617				1,694				1.33	%
Total interest-bearing liabilities	2,572,565				2,808				0.44	%		2,678,692				6,386				0.95	%
Noninterest-bearing deposits	633,841											453,048
Other liabilities	57,258											150,788
Total liabilities	3,263,664											3,282,528
Stockholders’ equity	405,933											406,564
Total liabilities and stockholders’ equity	3,669,597											3,689,092
Net earning assets	$	836,667										$	747,188
Average interest-earning assets to average interest-bearing liabilities	132.52		%									127.89		%
Tax-equivalent:
Net interest income					$	26,323										$	24,999
Interest rate spread									2.99	%										2.71	%
Net interest margin(4)									3.10	%										2.92	%
Non-tax-equivalent:
Net interest income					$	25,998										$	24,688
Interest rate spread									2.95	%										2.68	%
Net interest margin(4)									3.06	%										2.88	%

__________________________________________
(1) The average loans receivable, net balances include loans held for sale and nonaccruing loans.
(2) Interest income used in the average interest earned and yield calculation includes the tax equivalent adjustment of $325 and $311 for the three months ended June 30, 2021 and 2020, respectively, calculated based on a combined federal and state tax rate of 24%.
(3) The average other interest-earning assets consist of FRB stock, FHLB stock, and SBIC investments.
(4) Net interest income divided by average interest-earning asset.

	Years Ended June 30,
	2021											2020
(Dollars in thousands)	Average Balance Outstanding				Interest Earned/ Paid(2)				Yield/ Rate(2)			Average Balance Outstanding				Interest Earned/ Paid(2)				Yield/ Rate(2)
Assets:
Interest-earning assets:
Loans receivable (1)	$	2,819,180			$	113,065			4.01	%		$	2,748,124			$	123,364			4.49	%
Commercial paper and deposits in other banks	447,721				2,573				0.57	%		385,208				7,699				2.00	%
Debt securities available for sale	137,863				2,024				1.47	%		150,249				3,687				2.45	%
Other interest-earning assets(3)	36,519				2,338				6.40	%		42,119				2,694				6.40	%
Total interest-earning assets	3,441,283				120,000				3.49	%		3,325,700				137,444				4.13	%
Other assets	257,111											265,376
Total Assets	3,698,394											3,591,076
Liabilities and equity:
Interest-bearing liabilities:
Interest-bearing checking accounts	609,754				1,552				0.25	%		457,455				1,627				0.36	%
Money market accounts	882,252				1,699				0.19	%		767,315				6,910				0.90	%
Savings accounts	211,192				155				0.07	%		166,588				195				0.12	%
Certificate accounts	568,284				5,964				1.05	%		764,013				14,105				1.85	%
Total interest-bearing deposits	2,271,482				9,370				0.41	%		2,155,371				22,837				1.06	%
Borrowings	416,822				6,041				1.45	%		568,377				9,313				1.64	%
Total interest-bearing liabilities	2,688,304				15,411				0.57	%		2,723,748				32,150				1.18	%
Noninterest-bearing deposits	550,265											365,634
Other liabilities	56,315											90,247
Total liabilities	3,294,884											3,179,629
Stockholders’ equity	403,510											411,447
Total liabilities and stockholders’ equity	3,698,394											3,591,076
Net earning assets	$	752,979										$	601,952
Average interest-earning assets to average interest-bearing liabilities	128.01		%									122.10		%
Tax-equivalent:
Net interest income					$	104,589										$	105,294
Interest rate spread									2.92	%										2.95	%
Net interest margin(4)									3.04	%										3.17	%
Non-tax-equivalent:
Net interest income					$	103,322										$	104,104
Interest rate spread									2.88	%										2.92	%
Net interest margin(4)									3.00	%										3.13	%

__________________________________________
(1) The average loans receivable, net balances include loans held for sale and nonaccruing loans.
(2) Interest income used in the average interest earned and yield calculation includes the tax equivalent adjustment of $1,267 and $1,190 for the year ended June 30, 2021 and 2020, respectively, calculated based on a combined federal and state tax rate of 24%.
(3) The average other interest-earning assets consist of FRB stock, FHLB stock, and SBIC investments.
(4) Net interest income divided by average interest-earning assets.

Loans

(Dollars in thousands)	June 30, 2021				March 31, 2021				December 31, 2020				September 30, 2020				June 30, 2020
Commercial loans:
Commercial real estate	$	1,142,276			$	1,088.178			$	1,056.971			$	1,068.255			$	1,052.906
Construction and development	179,427				162,820				172,892				216,757				215,934
Commercial and industrial	141,341				140,579				138,761				148,413				154,825
Equipment finance	317,920				291,950				272,761				250,813				229,239
Municipal leases	140,421				129,141				128,549				130,337				127,987
PPP loans	46,650				73,090				64,845				80,816				80,697
Total commercial loans	1,968,035				1,885,758				1,834,779				1,895,391				1,861,588
Retail consumer loans:
One-to-four family	406,549				430.001				452.421				459.285				473.693
HELOCs – originated	130,225				131,867				125,397				135,885				137,447
HELOCs – purchased	38,976				46,086				58,640				61,535				71,781
Construction and land/lots	66,027				68,118				75,108				78,799				81,859
Indirect auto finance	115,093				119,656				122,947				128,466				132,303
Consumer	8,362				8,667				9,332				10,035				10,259
Total retail consumer loans	765,232				804,395				843,845				874,005				907,342
Total loans	2,733,267				2,690,153				2,678,624				2,769,396				2,768,930
Deferred loan costs, net	—				—				—				—				189
Total loans, net of deferred loan fees and costs	2,733,267				2,690,153				2,678,624				2,769,396				2,769,119
Allowance for credit losses	(35,468		)		(36,059		)		(39,844		)		(43,132		)		(28,072		)
Net loans	$	2,697,799			$	2,654,094			$	2,638,780			$	2,726,264			$	2,741,047

Deposits

(Dollars in thousands)	June 30, 2021				March 31, 2021				December 31, 2020				September 30, 2020				June 30, 2020
Core deposits:
Noninterest-bearing accounts	$	636,414			$	528,711			$	469,998			$	458,157			$	429,901
NOW accounts	644,958				727,240				654,960				608,968				582,299
Money market accounts	975,001				927,519				882,366				826,970				836,738
Savings accounts	226,391				221,537				209,699				202,787				197,676
Total core deposits	2,482,764				2,405,007				2,217,023				2,096,882				2,046,614
Certificates of deposit	472,777				503,471				526,246				645,164				739,142
Total	$	2,955,541			$	2,908,478			$	2,743,269			$	2,742,046			$	2,785,756

Non-GAAP Reconciliations

In addition to results presented in accordance with generally accepted accounting principles utilized in the United States (“GAAP”), this earnings release contains certain non-GAAP financial measures, which include: the efficiency ratio; tangible book value; tangible book value per share; tangible equity to tangible assets ratio; net income (loss), EPS, ROA, and ROE as adjusted to exclude branch closure/restructuring expenses and prepayment penalties on borrowings, and the ratio of the allowance for credit losses to total loans excluding PPP loans. The Company believes these non-GAAP financial measures and ratios as presented are useful for both investors and management to understand the effects of certain items and provide an alternative view of its performance over time and in comparison to its competitors. These non-GAAP measures have inherent limitations, are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for total stockholders’ equity or operating results determined in accordance with GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies.

Set forth below is a reconciliation to GAAP of our efficiency ratio:

		Three Months Ended												Year Ended
		June 30,				March 31,				June 30,				June 30,				June 30,
(Dollars in thousands)		2021				2021				2020				2021				2020
Noninterest expense		$	48,233			$	30,506			$	24,652			$	131,182			$	97,129
Less: branch closure and restructuring expenses		1,513				—				—				1,513				—
Less: prepayment penalties on borrowings		19,034				3,656				—				22,690				—
Noninterest expense – as adjusted		$	27,686			$	26,850			$	24,652			$	106,979			$	97,129
Net interest income		$	25,998			$	25,693			$	24,688			$	103,322			$	104,104
Plus: noninterest income		11,160				10,678				7,223				39,821				30,332
Plus: tax equivalent adjustment		325				326				311				1,267				1,190
Net interest income plus noninterest income – as adjusted		$	37,483			$	36,697			$	32,222			$	144,410			$	135,626
Efficiency ratio – adjusted		73.86		%		73.17		%		76.51		%		74.08		%		71.62		%
Efficiency ratio (without adjustments)		129.81		%		83.87		%		77.25		%		91.64		%		72.25		%

Set forth below is a reconciliation to GAAP of tangible book value and tangible book value per share:

		As of
(Dollars in thousands, except per share data)		June 30, 2021				March 31, 2021				December 31, 2020				September 30, 2020				June 30, 2020
Total stockholders’ equity		$	396,519			$	406,452			$	404,724			$	400,351			$	408,263
Less: goodwill, core deposit intangibles, net of taxes		25,902				26,002				26,130				26,285				26,468
Tangible book value (1)		$	370,617			$	380,450			$	378,594			$	374,066			$	381,795
Common shares outstanding		16,636,483				16,655,347				16,791,027				17,020,724				17,021,357
Tangible book value per share		$	22.28			$	22.84			$	22.55			$	21.98			$	22.43
Book value per share		$	23.83			$	24.40			$	24.10			$	23.52			$	23.99

__________________________________________
(1)    Tangible book value is equal to total stockholders’ equity less goodwill and core deposit intangibles, net of related deferred tax liabilities.

Set forth below is a reconciliation to GAAP of tangible equity to tangible assets:

		As of
		June 30, 2021				March 31, 2021				December 31, 2020				September 30, 2020				June 30, 2020
(Dollars in thousands)
Tangible equity(1)		$	370,617			$	380,450			$	378,594			$	374,066			$	381,795
Total assets		$	3,524,723			$	3,648,613			$	3,679,971			$	3,674,034			$	3,722,852
Less: goodwill and core deposit intangibles, net of taxes		25,902				26,002				26,130				26,285				26,468
Total tangible assets(2)		$	3,498,821			$	3,622,611			$	3,653,841			$	3,647,749			$	3,696,384
Tangible equity to tangible assets		10.59		%		10.50		%		10.36		%		10.25		%		10.33		%

__________________________________________

(1)    Tangible equity (or tangible book value) is equal to total stockholders’ equity less goodwill and core deposit intangibles, net of related deferred tax liabilities.
(2)    Total tangible assets is equal to total assets less goodwill and core deposit intangibles, net of related deferred tax liabilities.

Set forth below is a reconciliation to GAAP of net income (loss), EPS, ROA, and ROE as adjusted to exclude branch closure/restructuring expenses and prepayment penalties on borrowings:

		Three Months Ended													Year Ended
(Dollars in thousands, except per share data)		June 30,					March 31,				June 30,				June 30,				June 30,
		2021					2021				2020				2021				2020
Branch closure and restructuring expenses		$	1,513				$	—			$	—			$	1,513			$	—
Prepayment penalties on borrowings		19,034					3,656				—				22,690				—
Total adjustments		20,547					3,656				—				24,203				—
Tax effect		4,829					859				—				5,688				—
Total adjustments, net of tax		15,718					2,797				—				18,515				—
Net income (loss) (GAAP)		(7,408		)			7,869				3,595				15,675				22,783
Adjusted net income (non-GAAP)		$	8,310				$	10,666			$	3,595			$	34,190			$	22,783
Per Share Data
Average shares outstanding – basic		15,894,342					15,979,590				16,217,185				16,078,066				16,729,056
Average shares outstanding – diluted		15,894,342					16,485,718				16,489,125				16,495,115				17,292,239
Average shares outstanding – diluted (adjusted) (1)		16,406,581					16,485,718				16,489,125				16,495,115				17,292,239
Basic EPS
Basic EPS (GAAP) (2)		$	(0.46	)			$	0.49			$	0.22			$	0.96			$	1.34
Non-GAAP adjustment		0.98					0.17				—				1.15				—
Adjusted basic EPS (non-GAAP) (3)		$	0.52				$	0.66			$	0.22			$	2.11			$	1.34
Diluted EPS
Diluted EPS (GAAP) (4)		$	(0.46	)			$	0.48			$	0.22			$	0.94			$	1.30
Non-GAAP adjustment		0.96					0.16				—				1.12				—
Adjusted diluted EPS (non-GAAP) (5)		$	0.50				$	0.64			$	0.22			$	2.06			$	1.30
Average Balances
Average assets		$	3,669,597				$	3,753,263			$	3,689,092			$	3,698,394			$	3,591,076
Average equity		$	405,933				$	404,813			$	406,564			$	403,510			$	411,447
ROA
ROA (GAAP)		(0.81		)	%		0.84		%		0.39		%		0.42		%		0.63		%
Non-GAAP adjustment		1.72			%		0.30		%		—		%		0.50		%		—		%
Adjusted ROA (non-GAAP)		0.91			%		1.14		%		0.39		%		0.92		%		0.63		%
ROE
ROE (GAAP)		(7.30		)	%		7.78		%		3.54		%		3.88		%		5.54		%
Non-GAAP adjustment		15.49			%		2.76		%		—		%		4.59		%		—		%
Adjusted ROE (non-GAAP)		8.19			%		10.54		%		3.54		%		8.47		%		5.54		%

__________________________________________

(1) Average shares outstanding – diluted were adjusted for the three months ended June 30, 2021 to include potentially dilutive shares not considered due to the corresponding net losses under GAAP.
(2) Net income (loss) used in the basic EPS calculation includes an adjustment of $69, $(72), and $(32) for the three months ended June 30, 2021, March 31, 2021, and June 30, 2020, respectively, in relation to the two-class method. Net income includes an adjustment of $(145) and $(194) for the years ended June 30, 2021 and June 30, 2020, respectively, in relation to the two-class method.
(3) Adjusted net income used in the basic EPS calculation includes an adjustment of $(78) and $(98) for the three months ended June 30, 2021 and March 31, 2021, respectively, in relation to the two-class method. Net income includes an adjustment of $(315) for the year ended June 30, 2021 in relation to the two-class method.
(4) Net income (loss) used in the diluted EPS calculation includes an adjustment of $69, $(70), and $(28) for the three months ended June 30, 2021, March 31, 2021, and June 30, 2020, respectively, in relation to the two-class method. Net income includes an adjustment of $(141) and $(188) for the years ended June 30, 2021 and June 30, 2020, respectively, in relation to the two-class method.
(5) Adjusted net income used in the diluted EPS calculation includes an adjustment of $(76) and $(95) for the three months ended June 30, 2021 and March 31, 2021, respectively, in relation to the two-class method. Net income includes an adjustment of $(307) for the year ended June 30, 2021 in relation to the two-class method

Set forth below is a reconciliation to GAAP of the allowance for credit losses to total loans and the allowance for credit losses as adjusted to exclude PPP loans and acquired loans:

	As of
(Dollars in thousands)	June 30, 2021				March 31, 2021				December 31, 2020				September 30, 2020				June 30, 2020
Total gross loans receivable (GAAP)	$	2,733,267			$	2,690,153			$	2,678,624			$	2,769,396			$	2,768,930
Less: PPP loans (1)	46,650				73,090				64,845				80,816				80,697
Adjusted loans (non-GAAP)	$	2,686,617			$	2,617,063			$	2,613,779			$	2,688,580			$	2,688,233
Allowance for credit losses (GAAP)	$	35,468			$	36,059			$	39,844			$	43,132			$	28,072
Allowance for credit losses / Adjusted loans (non-GAAP)	1.32		%		1.38		%		1.52		%		1.60		%		1.04		%

__________________________________________
(1) PPP loans are fully guaranteed loans by the U.S. government.

SUNNYVALE, Calif., July 29, 2021 (GLOBE NEWSWIRE) —

John Maddison, EVP of Products and CMO at Fortinet 
“Adding to our industry-leading NGFW portfolio, FortiGate 3500F offers high performance and integrated networking and security at hyperscale for hybrid data centers. With the FortiGate 3500F, Fortinet is the only vendor that natively integrates access proxy capabilities in its NGFWs to turn on zero trust network access. Additionally, FortiGate 3500F further enables organizations to protect against evolving threats and rising ransomware attacks, delivering the industry’s highest security compute rating of 6x for performance compared to competitors – including TLS1.3 – to deliver consistent end-to-end security.”

News Summary


Fortinet
® (NASDAQ: FTNT), a global leader in broad, integrated and automated cybersecurity solutions, today announced the FortiGate 3500F Next-Generation Firewall (NGFW) to protect organizations with hybrid data centers against the ever-growing threat landscape and ransomware attacks. FortiGate 3500F offers some of the industry’s highest performance numbers, including TLS1.3, with automated threat protection post decryption. Additionally, FortiGate 3500F is built with zero trust network access (ZTNA) capabilities, further delivering consistent security and seamless user experience to any user at any location with its security-driven networking approach.

Evolving Threat Landscape Poses Security Risks Across Hybrid Data Centers

With the shift to work from anywhere, organizations are adopting hybrid data centers to increase operational agility by deploying some resources across multiple clouds while keeping other business critical applications and data in on-premises data centers for compliance and control. As the data center infrastructure becomes more distributed, however, the attack surface expands and more blind spots emerge, reducing visibility and increasing the potential for breaches and attacks. It’s critical for organizations to inspect encrypted flows to detect all type of attacks, especially malware that hides in secure channels, to prevent ransomware and the disruption of command and control attacks from stealing customer and corporate data.

Organizations also need a strategy to manage excessive implicit trust and provide inspection into the growing volume of encrypted traffic which is increasingly used by cyber adversaries to mask malicious traffic. Otherwise, organizations struggle to securely grow and accelerate digital transformation as their traditional security strategy and solutions can’t keep up with escalating business demands.

Securing Users, Data and Applications Everywhere

To address these challenges, FortiGate 3500F NGFW helps organizations ensure business continuity and advanced security for hybrid data centers. With the industry’s highest Security Compute Rating (SCR) of 6x IPsec, FortiGate 3500F NGFW secures the data center edge, core and interconnect by providing ultra-fast secure data center to data center paths to build disaster recovery sites. It also enables organizations to secure data center to cloud paths for cloud on-ramps with full compliance and controls. Other key highlights of the FortiGate 3500F include:

• FortiGuard Security Services and Fortinet ASIC SPUs enable hyperscale protection for ransomware and advanced threats: FortiGate 3500F is powered by Fortinet’s purpose-built ASIC Security Processing Units (SPUs), like the NP7 and CP9. FortiGate 3500F offers the industry’s highest security compute rating of 6x for performance compared to competitors – including support of TLS1.3 – to detect attacks, like ZEUS, Trickbot, Dridex, and protect organizations from network, application and file-based attacks and many other sophisticated threats. FortiGate 3500F also natively integrates with FortiGuard Security Services. This further helps organizations protect themselves against network anti-virus, mail security, anti-DDoS, and similar functions, like IPS and anti-malware solutions.

• Natively integrates access proxy capabilities, such as zero trust network access (ZTNA): FortiGate 3500F is the only NGFW in the industry that natively integrates access proxy capabilities to enable zero trust network access (ZTNA). This allows organizations to host applications anywhere with consistent policy controls to enable and secure hybrid workforce models with seamless and superior user experience.

• Seamless user experience through consolidation: Fortinet further delivers a security-driven networking approach with FortiGate 3500F, which combines security and networking capabilities, including Secure SD-WAN and Zero Trust Network Access. An industry first, only Fortinet offers Secure SD-WAN, SD-Branch and ZTNA in one single offering.

Scaling Business with Superior Performance and Advanced Security

Powered by Fortinet’s ASIC SPUs, FortiGate 3500F offers some of the highest performance numbers for NGFW with 12x higher speeds than leading competitors. As a result, FortiGate 3500F delivers unparalleled performance levels and hyperscale to inspect, segment and secure locally hosted data and workloads at network speeds. Organizations are able to host business critical applications and provide secure access to corporate users, customers and partners.

Below is a comparison of the FortiGate 3500F compared against top firewalls on the market.

Specification	Fortinet  FortiGate 3500F	Industry   Average	Security Compute Rating 3	Palo Alto Networks  PA-5260	Checkpoint  SG-26000	Cisco Firepower  FPR-4125	Juniper   SRX540024
Firewall	600Gbps	95Gbps	6x	60Gbps	106Gbps	80Gbps	135Gbps
IPsec VPN	165Gbps	28Gbps	6x	28Gbps	40Gbps	14Gbps	30Gbps
Threat Protection	57Gbps	29Gbps	2x	34Gbps	24Gbps	N/A	N/A
SSL Inspection	64Gbps	8Gbps	8x	6.5 Gbps	–	8Gbps	N/A
Concurrent Sessions	330M 1	28M	12x	32M	10M	25M	45M
Connections Per Second	4.8M 1	771.5k	6x	586k	550k	1.1M	850k

1. Performance with hyperscale license applied
2. SRX5400E-B1-AC, IPsec non-power mode​ 

Supporting Quotes

“Fortinet’s NGFWs provides organizations like DTDC Express Ltd with industry-leading high performance making it possible for us to remain agile and provide customers with superior user experience without compromising our security posture. With the increase in hybrid data centers and distributed users, Fortinet continues to innovate its Next-Generation Firewall portfolio with the FortiGate 3500F.”
-Mrinal Chakraborty, EVP IT & Innovations at DTDC Express Ltd., India

“Fortinet’s industry-leading NGFWs allow us to provide our customers with high performance and advanced security, which is especially essential to connect and secure today’s hybrid environments and workforce. The new FortiGate 3500F will enable us to deliver ZTNA capabilities and ransomware protection – both of which are critical to improving our customers’ security postures to combat the growing digital attack surface.”
-Mark Miller, General Manager, South at Kudelski Security

Additional Resources

• Read our blog for more information about FortiGate 3500F NGFW.
• 
  Watch
  how Fortinet makes possible a digital world you can always trust.
• 
  View
  how the Fortinet Security Fabric platform delivers broad, integrated, and automated protection across an organization’s entire digital infrastructure.
• Read more about how Fortinet customers are securing their organizations.
• Learn more about Fortinet’s free cybersecurity training, an initiative of Fortinet’s Training Advancement Agenda (TAA), or about the Fortinet Network Security Expert program, Security Academy program, and Veterans program.
• Learn more about FortiGuard Labs global threat intelligence and research and the FortiGuard Security Subscriptions and Services portfolio.
• Engage in the Fortinet User Community (Fuse). Share ideas and feedback, learn more about our products and technology, and connect with peers.
• Follow Fortinet on Twitter, LinkedIn, Facebook, and Instagram. Subscribe to Fortinet on YouTube.

About Fortinet

Fortinet (NASDAQ: FTNT) makes possible a digital world that we can always trust through its mission to protect people, devices, applications and data everywhere. This is why the world’s largest enterprises, service providers, and government organizations choose Fortinet to securely accelerate their digital journey. The Fortinet Security Fabric platform delivers broad, integrated, and automated protections across the entire digital attack surface, securing critical devices, data, applications, and connections from the data center to the cloud to the home office. Ranking #1 in the most security appliances shipped worldwide, more than 510,000 customers trust Fortinet to protect their businesses. And the Fortinet NSE Training Institute, an initiative of Fortinet’s Training Advancement Agenda (TAA), provides one of the largest and broadest training programs in the industry to make cyber training and new career opportunities available to everyone. Learn more at https://www.fortinet.com, the Fortinet Blog, or FortiGuard Labs.

FTNT-O

Copyright © 2021 Fortinet, Inc. All rights reserved. The symbols ® and ™ denote respectively federally registered trademarks and common law trademarks of Fortinet, Inc., its subsidiaries and affiliates. Fortinet’s trademarks include, but are not limited to, the following: Fortinet, the Fortinet logo, FortiGate, FortiOS, FortiGuard, FortiCare, FortiAnalyzer, FortiManager, FortiASIC, FortiClient, FortiCloud, FortiCore, FortiMail, FortiSandbox, FortiADC, FortiAI, FortiAP, FortiAppEngine, FortiAppMonitor, FortiAuthenticator, FortiBalancer, FortiBIOS, FortiBridge, FortiCache, FortiCall, FortiCam, FortiCamera, FortiCarrier, FortiCASB, FortiCenter, FortiCentral, FortiConnect, FortiController, FortiConverter, FortiCWP, FortiDB, FortiDDoS, FortiDeceptor, FortiDirector, FortiDNS, FortiEDR, FortiExplorer, FortiExtender, FortiFirewall, FortiFone, FortiGSLB, FortiHypervisor, FortiInsight, FortiIsolator, FortiLocator, FortiLog, FortiMeter, FortiMoM, FortiMonitor, FortiNAC, FortiPartner, FortiPenTest, FortiPhish, FortiPortal, FortiPresence , FortiProtect, FortiProxy, FortiRecorder, FortiReporter, FortiSASE, FortiScan, FortiSDNConnector, FortiSIEM, FortiSDWAN, FortiSMS, FortiSOAR, FortiSwitch, FortiTester, FortiToken, FortiTrust, FortiVoice, FortiVoIP, FortiWAN, FortiWeb, FortiWiFi, FortiWLC, FortiWLCOS and FortiWLM.

Other trademarks belong to their respective owners. Fortinet has not independently verified statements or certifications herein attributed to third parties and Fortinet does not independently endorse such statements. Notwithstanding anything to the contrary herein, nothing herein constitutes a warranty, guarantee, contract, binding specification or other binding commitment by Fortinet or any indication of intent related to a binding commitment, and performance and other specification information herein may be unique to certain environments. This news release may contain forward-looking statements that involve uncertainties and assumptions, such as statements regarding technology releases among others. Changes of circumstances, product release delays, or other risks as stated in our filings with the Securities and Exchange Commission, located at www.sec.gov, may cause results to differ materially from those expressed or implied in this press release. If the uncertainties materialize or the assumptions prove incorrect, results may differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Fortinet assumes no obligation to update any forward-looking statements, and expressly disclaims any obligation to update these forward-looking statements.

Media Contact:	Investor Contact:	Analyst Contact:
Stephanie Lira	Peter Salkowski	Ron Davis
Fortinet, Inc.	Fortinet, Inc.	Fortinet, Inc.
408-235-7700	408-331-4595	415-806-9892
[email protected]	[email protected]	[email protected]

 

PLANO, Texas, July 29, 2021 (GLOBE NEWSWIRE) — Stryve Foods, Inc. (“Stryve” or “the Company”) (NASDAQ: SNAX), an emerging healthy snack platform disrupting traditional snacking categories, today announced that it will host a conference call to discuss second quarter 2021 financial results on Monday, August 16^th 2021 at 4:30 PM Eastern Time. A press release with second quarter 2021 financial results will be issued the same day after market close. Joe Oblas, Co-Founder and Co-CEO, Jaxie Alt, Co-CEO and Chief Marketing Officer, and Alex Hawkins, Chief Operating Officer and Chief Financial Officer will host the call.

The conference call can be accessed live over the phone by dialing (631) 891-4304. A telephone replay will be available after the call and can be accessed by dialing (412) 317-6671 and entering the passcode 10016011. The replay will be available until Monday, August 23, 2021.

There will also be a simultaneous, live webcast available on the Investors section of the Company’s corporate website at Stryve.com. An archive of the webcast will be available on the corporate website shortly after the call has concluded.

About Stryve Foods, Inc.

Stryve is an emerging healthy snacking company which manufactures, markets and sells highly differentiated healthy snacking products that Stryve believes can disrupt traditional snacking categories. Stryve’s mission is “to help Americans snack better and live happier, better lives.” Stryve offers convenient snacks that are lower in sugar and carbohydrates and higher in protein than other snacks. Stryve offers all-natural, delicious snacks which it believes are nutritious and offer consumers a convenient healthy snacking option for their on-the-go lives.

Stryve’s current product portfolio consists primarily of air-dried meat snack products marketed under the Stryve®, Kalahari®, Braaitime®, and Vacadillos® brand names. Unlike beef jerky, Stryve’s all-natural air-dried meat snack products are made of beef and spices, are never cooked, contain zero grams of sugar, and are free of monosodium glutamate (MSG), gluten, nitrates, nitrites, and preservatives. As a result, Stryve’s products are Keto and Paleo diet friendly. Further, based on protein density and sugar content, Stryve believes that its air-dried meat snack products are some of the healthiest shelf-stable snacks available today.

Stryve distributes its products in major retail channels, primarily in North America, including grocery, club stores and other retail outlets, as well as directly to consumers through its e-commerce websites, as well as direct to consumer through the Amazon platform.

For more information about Stryve, visit www.stryve.com or follow us on social media at @stryvebiltong.

Contacts:

ICR

Investor Relations:
Raphael Gross, (203) 682-8253
[email protected]

Media Relations:
Eric Becker, (303) 638-3469
[email protected]